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Show Moving expenses deductible By KENNETH J. ROSE Business Counselor General Business Services Bountiful . Shifts in the nation's economy have put America on the move! If you are among the millions who changed residences during I98S and you moved primarily because you or your spouse changed job locations, you may be able to deduct de-duct moving expenses on your I98S federal income tax return. You may deduct the cost of moving mov-ing your family and your household goods from the old home to the new home, the cost of transporting you and your auto to the new house (either actual cost or expense estimated esti-mated at 9 cents per mile), any meals, lodging, parking and toll expenses ex-penses incurred en route if these costs are not reimbursed by your employer--provided you meet two requirements. First, your new workpalce must be located at least 33 miles further ; from your old house than your old work location. For example, if your old work site was 12 miles from your old residence, your new job must be at least 47 miles from the old house. The second requirement involves in-volves a time test. If you are an employee, you must work in the vacinity of your new job location for at least 39 weeks in the first 12 months following the move. Self-employed Self-employed individuals must work at least 78 Weeks in the new location during the first 24 months following relocation. If the time test has not yet been met by the due date on your tax return, but you are reasonably sure that you can meet it and you satisfy the distance test, you may claim the deduction. Taxpayers Tax-payers who later fail to meet the time test for reasons other than discharge dis-charge (except for willful misconduct), miscon-duct), transfer by the employer, disability or death must include with their next tax return an amount equal to the previously claimed deduction. (Note that the distance and time tests are waived for military personnel.) If you meet the above two tests, you may also deduct "indirect" moving expenses up to a limit of $3,000. Examples of indirect expenses ex-penses include costs involved in the following: up to 30 days of temporary tem-porary lodging near your new job-site job-site while you are house hunting or waiting to move into your new home; house hunting trips; leasing, selling or purchasing your old or . new home; and some legal fees involved in-volved in transferring property titles. ti-tles. Note that the indirect expenses for house hunting trips, travel, and temporary living near the new job location are limited to $1,500 within with-in the $3,000 overall limit on all indirect expenses. Costs related to the sale of your old home or the purchase of your new home which cannot be claimed because they exceed ex-ceed the $3,000 limit may be used to reduce the gain from selling your old home or used to increase the basis in your new residence. |
