In addition to the traditional steps necessary to sever the old domicile and establish a new one, moving expenses may no longer be deductible (although many of the individuals making such a move may not have qualified for a moving expense deduction
under prior law).
The subtraction of unreimbursed employee business expense and the moving expense deduction
is to make the concept of expanded income comparable to years prior to 1987.
Form 3903 is used to determine the amount of a person's moving expense deduction
An employee claiming a moving expense deduction
, whether or not the employer provided any reimbursement, must file Form 3903; copies of this form and instructions can be found at: http://pro.
In the same vein, it would be beneficial if Revenue Canada clarified for taxpayers, to the extent possible in the same document, the relationship between amounts subject to an income tax inclusion under this provision and amounts eligible for an employee moving expense deduction
under section 62 of the Act.
10 per mile for medical care travel or for a move that qualifies for the moving expense deduction
The court disallowed a moving expense deduction
, since the taxpayer's right to the offsetting reimbursement was sufficiently fixed and noncontingent so as to deny a deduction for the related expense.
The new law changes the distance requirement that taxpayers must meet to qualify for the moving expense deduction
, changes the classification of the deduction for moving expenses and restricts the types of expenses that qualify for deduction.
For tax years beginning in 1994, the moving expense deduction
is available only with respect to direct moving costs(31) (thus eliminating a prior law bias against separate returns with respect to the deductibility of indirect moving expenses).
OBRA(1) has substantially modified the employmentrelated moving expense deduction
, both by restricting the expenses that qualify(2) and by moving the deduction "above the line.
Fees associated with moving personal effects into a state, such as automobile impact fees, may be deductible based on a revenue ruling which allowed as a moving expense deduction
the excise tax imposed by Puerto Rico on the introduction of a second automobile into the island by a taxpayer moving there from the U.