Moving Expense Tax Deduction

Tax Deductions regarding Moving Expenses

If you moved to a new home because of a new job or a job transfer, you may qualify for a moving expense deduction. The distance between the old home and the new job must be at least 50 miles more than the distance between the old home and the old job.  The location of the new home is not considered. Whether a homeowner or renter, you can deduct the cost of moving household goods and the direct cost of moving you and your family.  You can also deduct expenses for lodging during the move but not meals.

Helpful Hint

While realty commissions, lawyers' fees and other closing costs are no longer deductible as moving expenses, these costs can reduce capital gains by adding to the home's cost basis or reducing its adjusted sales price. See IRS Publication 530 "Tax Information for First-Time Homeowners."

As always, do your research, talk to your tax advisor to ensure that you are eligible.

Back to Real Estate Tax Information