Your moving expenses may be deductible

If you moved this year because of a change in your job location or because you started a new job, you may be able to deduct the reasonable expenses of moving household goods and personal effects to your new home. The expenses of traveling to the new home including lodging expenses, are also deductible. Meals, however, are not.


If the move is closely related to the start of work and you meet both the IRS distance and time tests, your moving expenses are deductible. Certain members of the armed forces do not need to meet the tests if the move was due to a permanent change of station.

The move will meet the distance test if your new main job location is at least 50 miles farther from your former home than the old main job location. To determine whether you meet this test, use the shortest distance of the most commonly traveled routes between these points-. -Figure the distance between the former residence and the new job and then subtract the distance between the former residence and the old job. If the result is 50 miles or more, you've met the distance test.

You'll meet the time test if you work full-time for at least 39 weeks during the 12 months immediately following the move. If you are self-employed, you must work full-time for at least 39 weeks during the first 12 months and for a total of at least 78 weeks during the first 24 months after the move. The IRS makes exceptions to the time test in cases involving death, disability, or involuntary separation from service.

Tax Tips Small Business

  • Turning Interest Payments Into Tax Deductions

    Make interest payments work for you, not against you

    You can deduct business-related interest on your business return if you used the borrowed funds to purchase business supplies, equipment, services, etc. Co-mingling business and personal expenses makes it difficult to determine what amount of the interest is business versus personal. If this happens, the IRS may consider the entire amount as nondeductible personal interest and disallow the deduction. Therefore, keep all business purchases made with loans and credit cards clearly separate from your personal expenses. Use a separate credit card for your business to make it easier.

    Read more ...

Small Business Quick Tip

  • Business Mileage Rate

    Instead of deducting the actual expenses for the business use of your vehicle, opt for the standard mileage rate. In 2016, you can deduct 54 cents for each business mile you drive.
Monday, 18th March 2019
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Tax Tips Personal

  • Overlooked Employee Business Expenses

    Don't miss out on deductions you are allowed to take

    Unreimbursed employee business expenses are allowed as a miscellaneous itemized deduction provided they exceed two percent of your adjusted gross income when combined with all your other miscellaneous expenses.

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Personal Quick Tip

  • HSA Contributions

    Contributions to a health savings account (HSA) must be made by the due date of your tax return excluding extensions.