REALTOR® Magazine-Daily News-Tax Tip: Deductible Moving Expenses

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Daily Real Estate News | March 23, 2007 | Tax Tip: Deductible Moving Expenses
If you or your clients moved to take a new job in 2006, don’t forget to deduct these job-related moving expenses from your income tax return.

Jackson Hewitt Tax Service, which provides tax preparation services, offers the following guidance on what you can deduct:

Timing Is Important. If you moved in 2006, you can probably claim moving costs that were incurred within a one-year period from the date of your first day of work at the new location. If you moved to a new city and then found a new job, you may also be able to claim deductions, provided that you began working within a one-year time frame following the move.

Distance Requirements. The new location must be at least 50 miles farther from your former home than your old job location was from your former home.

Moving Expenses. Deductible costs include packing, crating, and transporting household goods and personal effects. Also deductible: storing and insuring items within any period of 30 consecutive days after the items are moved from your former home and before they are delivered to your new home. And, you can deduct connecting or disconnecting utilities and shipping your car and your household pets to a new home.