Can Moving Expenses be a Tax Deduction?
Moving expenses present excellent tax-savings opportunities. Three types of tests need to be met to obtain moving-related deductions: Start of Work Test – the taxpayer must begin working in the new location within one year of the move, but it is not necessary that employment be optained before the move. Thus, if the move occurred on Sept. 3, 2008, the taxpayer must start the new job by Sept. 3, 2009. Certain exceptions allow the one-year period to be extended. For example, if the taxpayer delayed moving to the new location so that a child could complete the school year, the one-year period would be waived. Distance Test 1 – the distrance from the new home to the new job location must be less than the distance from the previous home to the new job location. This rule is waived if the taxpayer spends less time or money traveling from the new home to the new job. For example, if the new home location enables the taxpayer to carpool (and carpooling was unavailable previously), the commutin
