Moving on up was the name of a famous show in which George and Louise Jefferson portrayed successful black entrepreneurs who were living in a posh condominium. However, moving to a new location due to a job change can be not only rewarding but generate a lot of deductions. If you make a qualified move, you can deduct the transportation costs for you and your family, including costs to move pets, any temporary lodging, and deduct the cost of moving your belongings. This doesn’t include the cost of transporting your girl/boy friend however unless they too qualify themselves under the rules. To be a “qualified move” you must meet a distance test and a time test. 1. Your new workplace location must be at least 50 miles further from your old home than your old job location was from your old home., and 2. You must work at least 39 weeks during the first 12 months after your arrival in the general area of your new job location. If you are self employed, the time test is that you must work full time for at least 78 weeks out of the first 24 months after arriving at the general location of your new work location. Bottom Line: If you move to a new job location and meet the rules, you get a nice deduction from adjusted gross income. You don’t need to itemize to benefit from this.
Posted on: Wed, 18 Sep 2013 17:26:05 +0000
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