Which Moving Expenses Can You Deduct?

Which Moving Expenses Can You Deduct?

With the year almost over, many of us might be beginning to think about tax time.  So, if you have recently moved or are planning on moving before the end of the year, are there any moving expenses that you can deduct?  The answer is yes.

The government actually permits for moving expenses to be included as deductions when you meet certain requirements.  However, the rules for deduction are pretty strict.  If you aren’t sure if the rules and guidelines apply to you, always be sure to talk to a tax specialist or accountant.

As long as you meet the distance and time requirements set forth by the government, there are parts of your move that you can deduct.  This is true for both domestic and international moves.  Also, you may only deduct those expenses that are fair and reasonable.  Here are some things to remember:

Car Travel

  • If you use your car for moving your family or belongings, you can deduct either actual expenses or the standard mileage rate.
  • Parking fees and tolls can be deducted, but not general repairs to your car.

Additional Travel

  • Lodging and transportation costs you accrue while traveling between your old and new home can be deducted.
  • The lodging expenses for one day after your move-out date can be deducted as long as your furniture has been relocated.
  • You can only deduct expenses for one trip to your new home.

Personal Effects and Household Goods

  • Packing, crating and transport costs for your stuff can be deducted.
  • The costs associated with disconnecting and connecting utilities can be deducted.
  • If you ship your car or pet to your new home, the cost can be deducted.

Storage Expenses

  • You can only deduct the cost of storage for 30 days between your old and new home.

Your situation may be an acception to the rule one way or the other.  Make sure to speak with a professional in your area for clarification on the restrictions.

Jon Huser