Are you thinking about your tax return yet? If you moved in 2008, some expenses may be deductable

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Are all moving expenses allowable tax deductions?

The IRS does allow tax deductions for some of the costs associated with a move to accommodate a job in a new location. However there are two tests which must be met in order to qualify for deductions.

Test 1 - Distance Test
To qualify for a deduction, your new principal workplace must meet a 50 mile test. The distance between the old home and old work minus the distance between the old home and the new work must be greater than 50 miles.

Test 2 - Time Test
A person must work full time in the general area of the new workplace for at least 39 weeks during the 12 months right after the move. Other exceptions and rules apply for those that are self-employed.

ALWAYS check with your tax advisor or the IRS website, Publication 521, and Form 3903 for more details.

Need a tax advisor referral? Email us at team@wesellwinchester.com