Families often choose to move in the summertime. Moving in summer avoids the problem of having to work around school schedules. It can be an expensive task, but there are ways a person can reduce their moving-related expenses. They can even deduct some of the expenses if they know how or find some good tax tips for consultants.
- Time your move to coincide with the start of a new job. Moving-related expenses incurred within one year of the move can be written off on your 2011 taxes. The location of your new workplace must be at least 50 miles away from the location of the old workplace.
- Pass the time test. If you worked 40 weeks or more for a year after you moved you may be able to claim your moving expenses on your taxes. If you are self-employed, the time that must pass before you can claim your dedications is two years.
- Keep all of your hotel receipts. You can deduct the money you spent on lodging while moving from one place to another. This rule also applies to any of the travel expenses you may have incurred. Just remember that you can only deduct one trip per person.
- If you are good at holding on to receipts, you can deduct the cost of moving materials. You can include storage and utility costs as a deduction on your tax return. The cost of setting up utilities at the new home also counts.
You cannot deduct any portion of the cost of your new home, unfortunately. You do not need to if you know other aspects of the tax code.
Related articles
- Your Tax Return For 2011 (2011tax.org)
- IRA Investing and Mortgage (2008taxes.org)
