Hi Mark Kohler here with another tax and legal tip let's talk moving expense, what happened to the moving expense
well
You need to know the rules if you're preparing a 2017 or older tax return and what you have to plan for and 2018
Until 2023 that's right whole new ballgame now if you've gone through the miserable experience of moving in 2017 as I did
There's some ways to
Maximize this cost that you incurred on your tax return and get a deduction which could save you some taxes
So let me tell you what the 2017 rules are and then it'll make more clear sense of what the 2018
Rules are moving forward now for 2017 and earlier. Here's the rules you need to know number one is the?
Distance test that's right distance you have to have moved at least 50 miles
to new location for a new job
That's right, 50 miles anything less than that no right off at all and it has to be for new employment
Number two is the time test the time test means that this new location
You have to have worked in the new job for at least 39 weeks of the last 12 months
So what this means a couple other variations, maybe is that when you move there?
You don't have to have a job right away
But you better get one and work at least 39 weeks in that new job
Within 12 months of the move and keep in mind if you move in the fall, and then you file your tax return
And you're into the new tax year
But I want to take this right off for last year
That's okay
if you were to get audited you want to just be able to show that within the twelve months of the move even if it's
Spam to tax years you worked at least 39 weeks of this new employment and number three your expenses need to be
Reasonable so just keep track of travel hotel
Mileage food any expenses to get you moved
And then for your items moved you can write off your u-haul rental truck or Ryder truck or whatever and even a professional mover
But you want to add up all those expenses and for 2017 or earlier you take all those
They're gonna go on the front page of your tax return a great tax write-off not limited by AGI or your income level
Married filing single separate whatever it's all good
It's a great write-off on the front page your tax return now in 2018 the game changed
This is no longer a write-off. That said it's that simple no more moving expense right off
The only people that can take the moving expense our active-duty service men or women in the military that have to move because they're in
Active duty at the military and the 50-mile requirement doesn't apply so they might move bases that are
Closer than 50 miles to one another don't worry about it, so
servicemen and women
We appreciate your service to our country, and you get to take the moving expense on the front page of your tax return
But for the rest of us no more now you might be frustrated by this
But this is what the government does when they give us new tax legislation they give us some good things
And they take away some other things to pay for those other good things and the government giveth and the government taketh away, so
This is one of the items that got axed so
so sorry
now one
ancillary
Item as well for those big companies that are paying the moving expenses for their employees to move and was a big fringe benefit
For some of you that maybe had a corporate job
Those are also curtailed and so some of these big employers may not be paying the moving expense or throwing down the gauntlet with
Nice perks when it comes to a move now you may be in a company that allows for that and gives you those right offs
But just know that they're facing the same problem, so
Maybe don't expect as much or just assume as much bottom line
2017 and earlier track the expense take it grab it use it moving forward
be careful now in 2023 all
of these new laws are gone and Congress is back at work trying to figure out what we get to keep and what we
Are going to have live with so?
anyway
Love it moving expense is out there for prior years
And that's all hope it comes back and we can use it in years to come
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