If you’re starting the new year out with a big move – for work, or for a relationship – it’s only natural to be full of questions. Whether you’re moving 15 miles away, or 1500, moving changes many things, sometimes even you taxes.
Here at Hacker Accounting, we want you to have as much information as possible regarding moving and how that affects your taxes, leaving you to worry about all of the other minor details the move creates.
Moving Expenses Is A Deduction
Many people don’t know that moving expenses due to job relocation can be deducted the year of the move as an adjustment to income. Depending on the distance that you move, and if you meet certain time restrictions, you can take advantage of these deductions on your taxes. You can reduce moving fees, such as moving costs, travel, transportation, and lodging. You can also reduce the amount paid to store and transport all of your belongings.
Another moving instance you can potentially deduct would accompany the sale or purchase of a home. If you’re selling your home for profit, depending on the amount of time you’ve owned and lived in the property, you can exclude upwards of $500,000 from your reported income, filing as an MSJ.
If you are purchasing a home, you could qualify to deduct points and avoid mortgage premiums, saving you thousands of dollars immediately, and over time!
If you have any further questions regarding how a move affects your taxes, give Hacker Accounting a call at 602-375-5251. We’re here to help!