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.
