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MOVING EXPENSE DEDUCTIONS

August 16, 2012
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Homeowners who have recently relocated for work may be able to write off the cost of moving themselves, their household goods, their vehicles, and other reasonable costs (except meals) associated with the move.   The move is subject to distance and time requirements.
The distance rule is a mileage requirement.  Your new place of work must be at least 50 miles further from your former place of residence than was your former place of work.  

Additionally, following the move you must be a full-time employee of the new employer for at least 39 weeks of the next 12 months.  Under certain conditions the time requirement may be waived.  Self-employed individuals and members of the armed service may also be eligible for the moving allowance, subject to special rules.

If you moved from one state to another, chances are that you will be required to file multi-state tax returns.  This could bring up a number of complicated tax and reporting issues.  An allocation of income must be made between the two states and proper documentation maintained.  You should contact us in order to save yourself time and costs associated with incorrect reporting or double taxation.