Moving To A New Location Tax Information

Moving To A New Location Tax Information



Moving to​ a​ New Location – Tax Information
In modern America,​ it​ is​ rare to​ find a​ person or​ family living in​ the​ same place for thirty years .​
Most of​ us move five or​ ten times,​ which means taxes become an​ issue .​
Moving to​ a​ New Location – Tax Information
I hate moving .​
Absolutely loathe it .​
I​ am sure you​ do as​ well .​
Nonetheless,​ you,​ me and everyone seem to​ move all the​ time .​
Whether we are buying and selling real estate or​ just getting a​ new start in​ a​ new location,​ there are lots of​ little things we have to​ get in​ order .​
While utilities and cable are first on​ the​ list of​ things to​ handle,​ most people fail to​ pay close attention to​ tax issues and miss out on​ some juicy deductions .​
If you​ are moving,​ you​ are inevitably going to​ dish out some cash for movers,​ a​ truck,​ boxes,​ gas,​ hospital visits,​ aspirin,​ more aspirin and so on​ .​
Fortunately,​ these expenses may be deductible on​ your next tax return .​
There are three tests you​ have to​ meet .​
Initially,​ you​ have to​ be starting work at​ a​ new job location .​
Many misunderstand this requirement to​ mean that you​ have to​ already have a​ job when you​ move and that is​ the​ reason for the​ move .​
This is​ incorrect .​
You must simply find a​ new job once you​ have moved .​
The second requirement deals with timing issues .​
Assuming you​ are going to​ start a​ new job,​ you​ must actually start within a​ prescribed time .​
This time period is​ a​ year from the​ date of​ the​ move .​
This should be relatively easy to​ comply with as​ the​ lack of​ a​ new job within a​ year probably will mean you​ have returned to​ your old job and location .​
The third test is​ known as​ the​ distance test .​
The IRS calls this the​ closely related in​ place test .​
Essentially,​ you​ have to​ be able to​ show the​ distance from your new residence to​ your new job is​ smaller than the​ distance from your previous residence to​ the​ new job .​
Your new job location must also be at​ least 50 miles from your old one .​
This should be pretty simple for most people to​ show .​
If you​ can’t meet this test,​ you​ can get around it​ by claiming the​ commute is​ easier and cheaper than your old one .​
If you​ meet these tests,​ you​ can claim some nice deductions .​
They include travel expenses and all moving expenses reasonably related to​ the​ move including 30 days of​ storage .​
Sorry,​ but you​ don’t get to​ deduct hotel stays and food .​
Regardless,​ you​ can claim the​ deductions on​ form 3903 .​
Just attach it​ to​ your 1040 when you​ file.




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