Is It Possible To Deduct Moving Expenses For A New Job?
Moving to a new place is expensive! There are a variety of reasons for you to move and hire a local Cave Creek moving company. A few are moving closer to family, getting a better house for the family, or moving closer to work. In Arizona, near the Phoenix Metropolitan area, people will live in Mesa and drive to downtown Phoenix for work, or vise versa. There are many reasons why people choose to live in the suburbs and work in the city. However, there are people that relocate to a new community to be closer to work. Living ten to twenty minutes away from work reduces that amount of time on the road, and increases the family and leisure time. Having said that, is it possible to deduct moving expenses for a new job? It is possible, but there are a lot of variables that determine that possibility.
For one, is the relocation based on work? Moving to a new community hoping to find a new job nearby will not deduct expenses. If you live in Avondale, Arizona and work in Scottsdale, that raises the possibility of deduction. However, if you are an essential employee within the company you work for and they gave you the option to move to California for a promotional position, that will definitely be accountable for a deduction. Relocating out-of-the state is expensive as well. Another example that is not a variable for deduction moving expenses is moving down the street. That move is not expensive, so you don’t even need to call a moving company near the 85331 area for assistance.
If you’re a recent employee at your job, say three months, that will not deduct any moving expenses either. IRS states that employees must work full time for at least 39 weeks during the first year that follows the move. Self-employed individuals must work for at least 78 weeks during the first two years after moving. The period of work hours to qualified for deducting moving expenses includes paid and unpaid leave or vacation, involuntary absence due to illnesses, strikes, shutouts, and natural disasters. There are more regulations, click here to learn more.
Once you’ve clarified with the IRS about deducted moving expenses and aware of the requirements, keep score of the expenses. There are certain expenses that deductible and others that you will have to deal with. Expenses that are deductible are as follows:
Travel Expenses – This includes the transportation, and lodging for you, members of your household and pets.
Expenses made for the day of arrival.
Cost to pack, ship, unpack, and store your belongings – This needs to happen within 30 consecutive days after the move date and before the arrival date.
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There is not a dollar limit on your deductible expenses, but that does not mean to get carried away with the expenses. Expenses that are not deductible are as follows:
No add-on vacation cost – Can’t have a short vacation in between moving dates.
No detours or time consuming routes to our new home – This means that you have to move by the shortest and direct route available by transportation used and in the shortest amount of time required to travel that distance.
Purchasing price of your new home
Expense of buying or selling a home
Cost to enter or break a lease
Loss on the sale of your home
These expenses are necessary when moving to a new home, but don’t be an impudent. Make reasonable expenses, and take into account that moving to a new community, out-of-state or overseas was your idea. Deducting moving expenses is a privilege with reasonable requirements.
Moving to a new home or relocating for a job is an expensive hassle. Everyone either loves or hates their job. Those you love their jobs will do whatever is necessary to be closer to their job. For most individuals, the place they work at is a second home. However, their primarily family home will always be first. In order to spend more time with family, or have the extra leisure time is amazing. That includes providing the best for them, or oneself.. If your employer is offering you a better position out-of-state with a well raise, it would be terrible if you weren’t considering it. A to Z Valley Wide Movers provides quality residential and commercial moving services near Cave Creek, making your reloaction as comfortable and stress free as possible. If you’re in need of an out of state moving company, we are available. Visit our website or call us for a free quote.