Moving expenses can be a challenge for many new movers. If you are moving with family or friends, the process of relocating can be a very exciting time. Moving can be very stressful for those who are not used to it, especially if they have never been through the process before. In this article, we will explain some common expenses that might be included in your moving expense tax deduction.
If your move is both work-related and time-consuming, then you can generally deduct moving expenses. However, moving expenses are only considered as adjustments to income if you qualify for it under one of the tests described above. To qualify, you have to meet one of the following tests: closely-related in time and proximity or directly related but not identical in relation to the period of relocation, and the cost of relocating to a new location is less than the value of your new home after deductions for property depreciation. This is the most challenging test because it requires a close determination of the loss and replacement costs between your old location and your new location.
It is important to remember that moving expenses are still deductible if your move happens to be a result of natural disasters such as fire, flood, earthquake, etc. If you meet certain requirements, then your claim for deductions will still be approved. For example, if you live in a affected area, then you might still be able to claim for your moving expenses. The IRS has established criteria for claiming these kinds of benefits, so if your home was severely damaged by fire or flood, then you should still look into it to see if you qualify for a tax credit.
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