Moving Expense Deduction

Moving Expense Deduction

A reduction in one's taxable income because of money spent in the course of moving to start a new job or to transfer in one's current job. This deduction is subject to certain restrictions. Specifically, only expenses incurred from the physical act of moving are deductible. For example, meals taken while traveling are not deductible, but the cost of gasoline may be.
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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.
Rev Rul 62-210 Moving your pets: Moving expense deduction allowed for the cost of moving Fido to his new home.
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.
The Revenue Reconciliation Act of 1993 (RRA) made substantive changes to the moving expense deduction.
For expenses incurred after 1993, the types of expenses eligible for the moving expense deduction have been substantially reduced.
37) There are exceptions to the general rule: The minimum two-year rule does not apply when a taxpayer sells his personal residence due to a change of job (so long as the move qualifies for the moving expense deduction under Sec.
Thus, the employee would have income under section 82 for the amount of the $8,000 transaction costs, followed by a limited moving expense deduction under section 217.