How To Deduct Moving Expenses For Taxes
While you move, you have already made the decision to invest in moving services in order to get your belongings to your new place. After all, moving all your furniture on your own can prove to be difficult as you may damage your own stuff. For that reason, you need to make sure that the respective mover you are about to hire is providing moving supplies, a moving truck, relocation insurance, and other required things like tools.
However, that’s just the logistics. What you’re really interested is saving money on your move. Luckily, you can deduct your move as an expense since the Internal Revenue Service or IRS has made it possible for particular expenses such as moving to be deducted on your tax return. If you went beyond your budget when you moved, this is a way to get back. Think about it like a rebate!
Most people who move every single year don’t take advantage of this deduction because they simply don’t know about it. Also, many people think that it’s more difficult than it really is. The question always arises: is this really deductible? How can I do it?
Honestly, deciding what you can deduct within your moving costs is quite easy. In this aspect, there are only some specific expenses which may be officially deducted through your taxes. These are things which the IRS sees as ‘acceptable deductions’ related to moving-related expenses such as:
- Costs that are directly connected to traveling from your old to the new destination
- Oil or Gas expenses
- Parking fees
- Mileage deduction (calculated by the mile)
- Tolls charges
- Shipping
- Connection as well as disconnection of utilities
- Costs related with the particular handling of moving pets
- Packing, transporting and crating of the household items as well as personal belongings
- Storage of private belongings for about 30 days from your move date
Here, you can find the cost amount associated to the move is also deductible. The main point again is to stay within your budget so you don’t get in financial trouble. You can deduct even more things when it comes to moving, but you may want to speak with a tax consultant. Avoid having a with the IRS. Don’t go off deducting moving related costs that do not quality, such as:
- Any charges connected to extra side trips for sightseeing as well as for visiting relations
- Costs associated to common vehicle repairs or maintenance during moving
- Costs of foods and meals within travel
- Also, the cost of your vehicle’s insurance
It is also vital for you to remember that while you are moving from one destination to another, you must be aware of the distance that you need to drive. It will help with getting an accurate quote and planning the trip to your desired destination. Moving is always an expensive agenda, so know there’s no way to escape that unless you plan on moving everything on your own. Prepare to pay a few thousand dollars if you are moving across state borders, and probably a few hundreds if you are moving in town. If you plan on moving by yourself, you may not be able to deduct as much as you will if you use an actual moving company. Research is a great way to find out what you can and cannot do when it comes to deducting moving expenses. Doing research will also help you plan for the best move, especially if you are about to do it on your own.
Tax deductions also occur at the coporate level when moving, as many commercial businesses and offices move every year. Businesses have so many costs so it’s important for them to itemize every expense, especially moving expenses. Everyone relocates at least once in their lifetime, but this fact is not only true for residential consumers. Surveys show that most business who survive at least 5 years in business end up expanding their business by moving to a new location which offers more space and accomodation. For commercial businesses, a moving company is normally hired and so the cost is easily deducted by the end of the quarter. We believe that it is truly beneficial to hire the services of a moving company, for an easy and smooth relocation experience.
Article by Isaac Atia, Head SEO Consultant at Premier Movers, a full service moving company based in North New Jersey. Premier is also known as extremely reputable NJ Movers and relocate hundreds of people every year.
Categories: Federal Tax, Income Tax, State Tax Tags: federal tax, tax, tax credits, tax deductions
You’ll Be Hearing From My Solicitor!
Okay, so that heading was a shameless ploy to get your attention. It’s a line beloved of dramatists when, usually rather over-starched, people get themselves into some kind of difficulty. But, in the same way as a dog isn’t just for Christmas, solicitors aren’t just for the bad things in life. You don’t need to be involved in a court case in order to need one.
Safe as Houses
Property is an area where solicitors often come into our lives. Most of us will encounter a solicitor when buying or selling a house as they handle the conveyancing process. This is the transfer of the legal title of the property from one person to another and the filing of all the paperwork associated with it.
The conveyancing process usually takes several weeks though the exact time can vary depending on a number of legal, personal and financial issues. The sale contract isn’t legally binding until contracts are exchanged.
Where There’s a Will, There’s a Way
The other area where solicitors come into people’s lives is wills and inheritances. It’s possible of course to write your own will, but solicitors have the experience to write it in such a way that you ensure your wishes are carried out. Solicitors can also help with the administration of your estate when you pass away and planning for inheritance tax. They can also store your will safely for you so that your relatives know where to find it.
Business Management
If you run a business then you’ll probably need to be involved with a solicitor for that too. Again they can help with property transactions, although a solicitor can also make sure you’re on the right track with other contracts too.
You may require help drawing up shareholder agreements or partnerships for example. Or you may need to draw up contracts for mergers or buy outs. If you’re buying a franchise or carrying out some form of intellectual property transaction then you’ll probably need a solicitor to help you with that too.
Using a solicitor to help you draw up employment contracts can ensure that you avoid disputes later. Getting the legal issues right is particularly important when it comes to things like redundancies and dismissals. Getting the advice of an employment lawyer early in the process helps ensure there won’t be problems in future.
Finding a Solicitor
When it comes to finding a reputable firm of solicitors, try to find one that specialises in the area of law that you need. The Law Society’s website lets you search for local solicitors and the areas they specialise in.
It’s important to find out about the fees that will be charged before you approach a solicitor. Many firms will offer a free or low-cost initial interview to allow them to find out your requirements and help you to decide if you want them to work for you.
It’s important to be clear when briefing your solicitor and to keep copies of all relevant paperwork. If you need to send documents through the post, make sure you use a secure method like recorded delivery to ensure that they arrive safely.
Whatever you need a solicitor for; you should be able to find a firm in your locality. There’s nothing to stop you shopping around a few different firms to ensure you find one that you’re comfortable working with and that is able to meet your needs.
Paula Whately is a writer who understands that a solicitor can be an important person to seek help from in many situations. If you are looking for reputable solicitors, Camberley experts can guide you in finding one which suits your personality and needs
Categories: Federal Tax, Income Tax, State Tax, Tax Evasion, Tax Law Tags: business management, law, property, solicitors, sourcing, wills and trusts
Tax Season Tips: Avoiding Audits And ID Theft
For any number of reasons, tax season is stressful. Sure, everyone loves getting their return (if you don’t believe that, check the sales of Big Screen TVs and other luxuries in late April) but at what price? Outside of the sometimes exorbitant fees charged by tax preparers, modern citizens also have to contend with the “paper file versus efile taxes” debate and be concerned with identity theft.
What do you mean identity theft?
Oh, you hadn’t heard? Tax season is like Christmas for frauds and thieves. Late filers often find their returns rejected because an identity thief has already submitted a big, fat phony return using their name. And while IRS resolution centers work very hard to try to catch fraudulent tax returns and identity thieves, there are simply too many out there. That’s why each year, 50 year old grandmothers and 19 year old food service employees alike are at risk. Each year, the IRS releases a “Dirty Dozen” list to help you stay alert.
There is an enormous list of ways to fall victim, several of which are detailed in brief below:
Identity Theft: We’ve spoken about this already. Someone uses your personal information, such a Social Security number, to commit fraud. Commonly, they will file tax returns to claim refunds, typically under $5,000. Then your return gets rejected, and you’ve got months of headaches while it all gets sorted out.
Phishing: Computer criminals commit identity theft or financial theft after gaining personal information through the use of false e-mails or websites. A good thing to keep in mind to avoid being “phished” is to remember that the IRS never contacts taxpayers through any type of electronic communication.
Return Fraud. According to the IRS, 60% or so of taxpayers will go to professionals – H&R Block, Jackson Hewitt, or other tax preparers – to get tax help. The vast majority of them will get exactly what they’ve gone for: honest help. An unlucky few will fall victim to unscrupulous tax preparers. It is important to never sign a blank return, and to choose carefully when deciding on a tax professional. Even if you’ve gotten someone else to do your taxes for you, you and you alone are liable for the information put down on the return.
Falsifying Returns. Sometimes it is tempting to commit a low level sort of fraud yourself. Claiming exorbitant expenses to which you are not entitled, or taking advantage of the Fuel Tax Credit, for instance. In these cases, you yourself are the criminal, and the IRS can and will prosecute. Don’t allow false information on your returns.
How You Can Protect Yourself:
Contact the IRS if your wallet is stolen, if your information may be stolen, or if you have questionable credit activity.
Never, ever sign a blank return.
Don’t file your taxes over public Wi-Fi hotspots.
Use a reputable tax preparer or a reputable software
Don’t leave important documents lying out, or in your vehicle, or anywhere thieves can get to them easily.
It’s important to keep these things in mind whether you’re planning to efile taxes or paper file.
Featured images:
License: Creative Commons image source
Tony has been a tax professional for several years and likes to share some tips when it comes to protecting yourself.
Categories: Federal Tax, Income Tax, State Tax, Tax Law Tags: audit, identity protection, identity theft, tax advice, taxes