What are My Tax Deductible Items when Moving House?
As if moving house wasn’t time-consuming and stressful enough, another headache to add to the list of headaches associated with moving homes is the fact that it can be so expensive.
As well as the cost of the property, the legal fees, storage, removals, fuel, and so on, there will also be other expenses which can take a real toll on your bank balance.
As if you didn’t have enough to contend with when moving home, another factor which must be taken into consideration is taxes. Ever since Congress did away with federal tax deductions for moving in 2018, people have assumed that none of their items are deductible when moving, but that isn’t strictly true.
Here’s a look at which items may be tax-deductible when moving house.
Who is eligible for tax deductibles when moving?
One exception to the law passed in Congress back in 2018 is for those who are actively serving in the military. Another exception is for those who are self-employed.
If you are on active military duty and moved pursuant to a full-time change of station, you can claim tax-deductible moving expenses.
If you are a business owner who is self-employed and you have moved house as part of starting a new business, you too are eligible to claim certain tax deductibles for moving.
Spouses and children of imprisoned, deceased, or deserted military members are also eligible, as are surviving family members of an individual who worked overseas for the U.S, individuals relocating back to the States after retiring from working abroad, and individuals who lost their job as a result of a disability.
So, which moving expenses are tax-deductible?
If you do qualify for tax deductibles relating to your move, you of course need to know which items are actually tax deductible. It is also worth knowing that it is only direct moving costs that are tax-deductible.
Deductible expenses which are directly linked to the move that are tax-deductible include:
Packing and moving for household furniture and goods in general
Travel costs, both for yourself and your family traveling with your
Vehicle shipping
Switching off utilities at your previous residence
Vehicle parking costs
Temporary accommodation while en-route to your new home
Property storage costs for up to 30 days before you have it delivered to your new home
The importance of moving companies
If you are planning a big move, rather than handling the move yourself, it is always recommended that instead, you hire a household goods moving company.
By hiring moving companies, not only do you eliminate a huge amount of hard work and stress on your end, you can also ensure that your household goods and items are well looked after and in the safest possible hands for your move.
Hiring a household goods company will save you time and effort when moving house, and it will offer you peace of mind in the process.
