By: Jalenn Turre, Marketing, Business & Social Media Strategist
Individuals and their family members, when relocating to new locations are new experiences; somehow understanding the implications of taxes on various expenses from old location, during transition and at new location are quite overwhelming.
Per IRS (Internal Revenue Service) Test whether you can claim deductions from your relocation expenses to new location, there are three items to think about; (1) distance test, (2) start date at work (3) employment status at new location
Within the United States, in order to gain deductions of relocation expenses, the new location of one’s home must be at least 50 miles farther from old home location. Relocating at international country will not be an issue, unless your original home is within 50 miles or less across the border of the neighboring country. When you are not certain with the actual regulation between cross border relocation, please consult an experienced international mobility specialist.
Few More Tips for Consideration:
Travel. Transportation and lodging expenses for yourself and household members while moving from your old home to your new home.
Household goods and utilities. Cost of packing, crating and shipping your things. Possibly the cost of storing and insuring these items while in transit. Cost of connecting or disconnecting utilities.
Nondeductible expenses. Any part of the purchase price of your new home, the cost of selling a home or the cost of entering into or breaking a lease.
Reimbursed expenses. Employer’s reimbursed you for the cost of a move that you deducted on your tax return, you may need to include the payment as income.
Address Change. When you move, be sure to update your address with the IRS and the U.S. Post Office.
After your relocation date, you get confused regarding items that can be taxable or non-taxable prior to filing your tax, ReloNavigator can be your resource. Our Specialist can assist you in determining your options. Our International Expatriate Tax Specialist will be guiding you.
For inquiries regarding the strategic services of ReloNavigator, please call 1 (360) 312-4300.