|
||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Death, taxes and moving. With me, it is a close call on which one I dislike more! Okay, death is definitely the winner, but moving is a close second. Unfortunately, we are all moving more and more due to a changing employment environment. It used to be that you could take a job with a company and count on staying there for thirty or forty years. Those days are long gone as we all know. From downsizing to salary concerns, we all move because of employment reasons. This change in society has not gone unnoticed by the government. In a shocking move, the powers that be have actually created tax dedutions for people who incur expenses moving to a new job. Well, at least most of them. Since we are talking taxes, nothing can be straightforward. Yep, you have to pass a few tests before claiming moving deductions. First up, your new job must be 50 miles more from your first home than your new place of employment. Confused? When it comes to taxes, examples always help. I live 3 miles from my current job. I apply and get a better job in another city that is 180 miles away and move. Since my new job is 177 miles away, I pass the mileage test. One test is never enought with taxes. You must also pass a time test that requires you to be employed full time in your new position for a miniimum of 39 weeks out fo the 48 immediately following your move. Oddly, the IRS also allows deductions to be claimed by the self-employed if you meet the above requirements. The time test is expanded, however, in that you have to work 78 weeks in the first 96 weeks. As with most new deductions, the IRS is sensitive to abuse. If you run the tests and don't qualify for the deduction even though it is close, don't make a claim. It could spark an audit, which really would be bad news. Okay, you passed the tests. What can you claim? Well, your reasonable moving expenses including mileage, truck rentals, and lodging. Oddly, you cannot claim meals while driving from your old home to the new one. Article Source: http://www.articlewheel.com
Aazdak Alisimo writes about moving issues. Find moving companies in your area at MovingCompaniesforYou.com.
|
  RSS Feeds by Category |
|||||||||||||||||||||||||||||||||||||||||||||||||||||
