Deducting The Cost of Moving To A New Job

In our modern society, moving to a new locationcould we make such a simple issue so complex.
because of a job is a fairly frequent event. WhileYou can run the calculation yourself, but an easier
moving is hardly enjoyable, you do get someguideline is just to figure out if your new job is
deductions out of it.more than 101 miles away. Why the IRS refuses
Deducting The Cost of Moving To A New Jobto take the simple approach is anyone's guess.
The days of spending 30 years in one town atAlas, the IRS is paranoid about cheaters, which
one job seem to be a thing of the past. Evenmeans there are a few other rules as well. First,
huge companies like General Motors are beingyou cannot deduct any expenses that your new
forced to redefine themselves. This redefiningemployer reimburses you for. Seems fair enough.
often comes in the form of letting employees go.You also must actually work in the area you
As this occurs throughout our economy, peoplemove to for at least 39 weeks of the one year
find themselves moving numerous times to newperiod after you get there. You do not have to
take new employment positions.work at the same job or for the same company
I will not beat around the bush on this one. Ithe entire time. For professional loafers, this gives
HATE moving. Really bad. I am sure you feel theyou 13 weeks to sit on your duff and enjoy the
same way. There is, however, one small silvernew environment without working.
lining to the grueling, miserable process. Yep, youIf you are self-employed, the moving test is a bit
can deduct the expenses you incur in getting yourtougher. The distance test is the same, but you
stuff from here to there.must work in the new area for 78 weeks out of
In a shocking twist given the nature of the taxthe two years immediately following your move.
code, the test to determine if your moving costsYes, you must live there for two years to get
are deductible is fairly simple. Well, for the taxthe deduction. Just more proof that the IRS hates
code it is. The test says that you can claimyou.
deductions if the distance from your old home toMoving is a nightmare. If you meet the handy,
your new place of employment is more than 50dandy tests of the IRS, at least you can deduct
miles than the distance from your old home tosome of the cost.
your old place of employment. Only in America