Also, if your moving expenses
are already covered by your employer, you cannot double-dip.
Larger companies with more than one geographical location can encourage mobility of their employees among company locations by adopting a moving expense
To ensure deductibility, the costs of both categories of moving expenses
must be reasonable in amount and bear reasonable proximity in time to the beginning of work at the new location.
Therefore, if the taxpayer receives cash to pay for the costs of moving, has his moving expenses
paid directly by his employer, or has his household goods moved by his employer using the employer's equipment, he is considered to have received a moving expense
The comments address three specific instances where the retroactive change seems particularly unwarranted, the proposed amendments regarding the treatment of inducement payments as refunds, the proposed amendment to paragraph 62(3)(f) to exclude amounts paid on account of GST from the definition of moving expenses
, and the proposed amendments to subsections 13(4), 13(4.
The taxpayer will have a choice of using house selling expenses for the moving expense
deduction or to adjust the proceeds for computation of gain or loss on the sale of the former residence.
Because of the change, moving expense
deductions will effectively become available for state tax purposes in States that begin with federal adjusted gross income in computing state taxable 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.
On June 28, 1992, Tax Executives Institute filed the following comments with the numbers of the congressional tax-writing committees on the proposed limitation on the deductibility of moving expenses
in excess of $5,000.
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.
Under section 82, the employee must include in gross income amounts received, directly or indirectly, as payment for or reimbursement of moving expenses
The 2001 standard mileage rate for medical and moving expense
purposes will be 12 cents per mile, up from the 10 cents per mile rate in effect during 2000.