Photo by: jystewart

Here is part three of the five part series on business expenses that you can deduct on your tax returns.  Moving Expenses are on today’s agenda for something that you are allowed to deduct as a business expense.  These expenses are deductible if the move is in connection with commencement of work at a new principle place of work.  To be eligible for this you must meet two different tests.  The first is the distance test.  So, to meet this test the new job location must be at least 50 miles father from the taxpayer’s old residence than the old residence was from the former place of employment.  To meet this you must work at the new job for 39 weeks in the first 12 month period or 78 weeks during the first two years.  If you meet both of these tests than your expenses are deductible.  When deducting your expenses you are allowed to only include the cost of moving your household goods and personal effects and traveling from your former residence to your new one.  The traveling includes your lodging but not your meals experienced along the way.  If this is a situation which you encounter over time, and many people will, you now know what you can and can not deduct on your tax return.

As always read the IRS bulletin to the changes that may occur between tax years.  Congress is always playing with rules in the tax code.