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Tax Deductable Moving Expenses
If your move was employment-related (excluding first-time employment), and the distance between your former residence and your new residence is over 35 miles, many of the moving expenses you incurred are tax deductible.
Deductible moving expenses include:
1. The cost of the transportation you and the members of your household from the old residence to the new.
2. The cost of moving your household and personal goods.
3. The cost of meals and lodging en route.
4. Temporary living expenses for up to 30 days in the new job location.
5. House-hunting expenses incurred after obtaining employment in the new location but prior to moving.
6. Expenses incident to the safe, purchase or lease of the a residence, i.e., attorney's fees, real estate commissions, title fees, points on loan placement charges, etc.
Items 4 through 6 are limited to $33,000, and temporary living expenses and house-hunting expenses may not exceed $1,500 of the $3,000. When using your automobile in the move, you may deduct the out-of-pocket expenses, or use a standard mileage allowance of $0.9 per mile.
If you receive a moving payment or reimbursement from your employer, the amount must be included in your gross income as compensation for services.
To deduct moving expenses, fill out Form 3903
, Moving Expense Adjustment, and attach in to your return. For full details on tax-deductible moving expenses, contact the Internal Revenue Services office in your area.
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