One of my dear friends just moved from San Francisco to New York. While I was sad to see her go, I am excited that she has a fabulous deduction for 2015 — the Moving Expense deduction!
The moving expense deduction is one of my favorites because it is easy to qualify and it is deducted in a better place than most deductions so everyone can take it (i.e. you don’t have to itemize).
- You have to start your new job within a year of moving (easy!)
- You have to work in the new location for at least 39 weeks (easy!)
- Your new job location must be 50 miles farther from your old home than your old job location was (well, okay..
- that rule isn’t so clear but that is why you have an EA do your taxes)
What expenses are deductible:
- Boxes, crates and packing tape
- Cost of your movers
- Transportation to your new location (flights, vehicle expense, lodging)
- Cost of moving your pets to your new location
- Storage costs for 30 days before your stuff is moved to your new home
- Cost of connecting/disconnecting utilities
What you cannot deduct:
- More than one trip per person
- Food along the way
- Pre-move house-hunting trips
- Cost of selling your old home/breaking your lease
- Cost of moving furniture you buy on the way to your new home (this one amused me)
So, go get that job you always wanted and let your EA get you a big deduction at tax time!