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How to deduct moving expenses off your taxes?

Who can deduct moving expenses? (The following information does not concern- military persons)

To fit the IRS profile for such tax deductions you have to meet these 3 requirements:

•  Moving date is close to the date you start to work:

From the day you start your new job, you have the right to move close to the new job main location within 1 year and receive moving expenses tax deduction.

For example: you started your new job on November 1 st 2004, you can move until October 30 th 2005 and receive tax deduction by law.

If you require additional time and have a good reasons that made you delay the move, you may apply for tax deduction even after the 1 year time period and your request will be processed.

•  Your move meets these distance requirements:

The distance between your former home and your new main job location should be at least 50 miles more then the distance between your former home and your former main job location.

For example: if your former home was 5 miles away from your former main job location then your main job location must be at least 55 miles away from your new home.

•  Working time requirements:

Self employed:

After moving to your new home you must work full-time for at least 78 weeks.

Employee:

After moving to your new home you must work full-time for at least 39 weeks.

Moving Taxes Deduction:

If you answer to all of the above requirements you may deduct the following expenses out of your tax:

• All household goods moving cost.

• Storage – only in-transit and foreign moves.

• Traveling – all lodging expenses

• If you are using a car to transport yourself, your family members or any items of personal effects, you can deduct either gas and oil expenses if you keep track on these expenses, if use the standard mileage rate of 14 cents per mile.

**Notice – You can not deduct taxes for any meals

The following expenses cannot be deducted:

• Any home improvement done to help selling your home.

• Breaking lease fine.

• Buying or selling a house.

• Mortgage penalties

• Switching car tags

• Real estate taxes

• Temporary living expenses

• Security deposits

All information is relevant to 2004 tax year and can be changed without notice.

For more information contact you local IRS office or log on to http://www.irs.gov