Moving Expenses

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Moving Expenses

Money that one spends in the course of moving to start a new job or because of a transfer in one's current job. In the United States, one may deduct moving expenses from one's taxable income, after certain thresholds are met with regard to time and distance. 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.

Moving Expenses

An adjustment to income permitted to employees and self-employed individuals who move for work-related reasons, providing certain requirements are met. Form 3903 is used to compute deductible moving expenses.
References in periodicals archive ?
Also, if your moving expenses are already covered by your employer, you cannot double-dip.
A moving expense reimbursement can be a tax-free form of compensation for employees.
Deductible moving expenses fall into two categories, both of which are direct moving costs:
In order to qualify as a moving expense, the expenses must bear a reasonable proximity in time to beginning work at the new principal place.
As of January 1, 2005, the standard mileage rates for the use of a car (including a van, pickup or panel truck) for business purposes was set at 40.5 cents a mile; for medical or moving expenses, 15 cents a mile; and when providing services to a charity, 14 cents a mile.
It is my understanding that the Department of National Revenue, based on the current provisions of paragraph 62(3)(f), has taken the position that the reimbursement of GST payable on the cost of relocating an employee's new home would be a taxable benefit to the employee and not a deductible moving expense. In line with this position, and with the underlying rationale that I have explained, I would find it difficult to support a suggestion that the effective date of the proposed amendment to clarify this matter be changed.
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.S.
Under pre-OBRA rules, businesses were required to include all moving expense reimbursements in the employees' gross income and to give each employee a copy of Form 4782, detailing the amount of reimbursements of moving expenses, to assist the employee in claiming moving expense deductions in respect of amounts that had been included in the employee's income.
* Expenditures included in an employee's moving expenses that are paid or reimbursed by the employer and includable in the employee's gross income under IRC section 82.
* Nonqualified moving expense reimbursements, whether paid to the employee or a third party, will continue to be included in wages (form W-2, box 1) and subject to income, Social Security and Medicare taxes.
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.
The distance test is the same 50-mile test used in the moving expense rules--the individual's new place of employment must be at least 50 miles farther from the sold residence than the former place of employment.