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FEB
12
Plan Now To Get Work-Related Tax Breaks If You Had To Move In 2012
By John Askins | Share Post



For those who moved in 2012, you may find tax deductions to write-off some of those hefty moving expenses.

You can write off relocation costs on your taxes, as long as the move is work-related, according to the IRS.

Some IRS-approved deductions for moving include the costs to move household goods and personal property, limited storage and insurance fees, and utility connection or disconnection charges, according to Bankrate.com. The IRS also allows for some deductions with lodging and travel expenses near your new and former homes, as well as shipping costs for your car and even the travel arrangements for your pets.

Here are some tips for claiming moving-related tax deductions, according to Bankrate.com:
  • Use the long Form 1040 to claim moving costs. Use Form 3903 to figure the costs. You do not have to meet a percentage-of-income threshold for moving deductions.
  • Ensure you meet the distance test. The location of your new job must be at least 50 miles farther from your prior address than your last office was. For example, if you lived 10 miles from your old job, your new job must be at least 60 miles from your old home before you can deduct moving costs.
The IRS’s distance test only considers the location of your old home and how far it is from your previous job, not your new residence.
  • Check the time requirements. Moving expenses are deductible if they were incurred within one year of starting a new job. You also have to work full time at a new job for at least 39 weeks during the first 12 months. As for self-employed workers, they must meet the year-to-move deadline and work full time at their entrepreneurial enterprise for 78 weeks during the first 24 months.
     
  • Collect all of those moving receipts.To claim the deductions, make sure you have receipts such as for the costs to move your property, storage, or utility connections.

    source:      Bankrate.com

John Askins

Askins Online Real Estate Blog
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Disclaimer: The views and opinions expressed in this blog are those of the author and do not necessarily reflect the official policy or position of the Houston Association of REALTORS®

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