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Tax Deductions For Moving Expenses

About 28 million Americans made a move in 2021, including about 5 million people

who moved across state lines. Whether you hire movers or go DIY, Umzugsskosten

can add up quickly. That’s why it’s important to plan carefully and include all the

potential costs.

The costs of a move are determined by how many rooms there are in your home,

the amount of furniture or other items you’re transporting and the distance between

your old and new homes. Other determining factors may be the type of transport

used (truck, air or ocean), whether specialty services like disassembly or crating are

needed and how long you need to store your belongings.

Hiring a professional mover is generally the most cost-effective option. Local movers

charge a flat rate based on the number of rooms in your home, with additional fees

for stairs and other special requests. In addition, many movers offer add-on services

like unpacking, cleaning and disposal of boxes and supplies. The cost of these extras

can significantly increase the overall bill.

It’s also a good idea to review your moving quotes carefully, noting what each one

does and doesn’t include. The time of year when you move can affect the price, with

summer being peak moving season and resulting in higher prices. If possible, you’ll

want to schedule a move in the fall or winter.

If you are moving for work, your employer may reimburse you for certain moving

expenses. This typically applies to moves within the same city or state or to another

country in the United States or its territories. In addition, your employer may

reimburse you for moving expenses if you are reassigned to a different position or

job that requires relocation.

For more information about these and other moving-related tax deductions, visit the

IRS website.

Some expenses you incur before your move that can be deducted include the rental

or purchase of a truck or trailer, fuel and tolls, and lodging. You can also deduct the

cost of shipping your vehicle to and from your new location, if necessary. You can

also claim the cost of storing and insuring your goods while in transit. You can do

this for up to 30 days after your goods leave your previous home and before they are

delivered to your new one. This can be a useful service if your new home isn’t ready

to receive your belongings or if you are making a temporary living arrangement

while looking for a permanent residence. Moreover, you can store and insure your

goods for up to 60 days after leaving a military base if you are being relocated

overseas. However, the goods must not be sold or bartered during this period. You

can also claim these costs if you’re moving for a medical condition or family

emergency. These claims can be difficult to verify, so it’s best to keep records of all

the costs you incur.

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