How Do You Deduct Moving Expenses For Business?
If you have to relocate for business, you may be able to deduct the moving expenses from your income taxes. There are a couple of tests you can take to determine whether you qualify for such a deduction. Determine whether your move meets the “distance test” to qualify the expenses for tax deduction. Your new job must be more than 50 miles farther from your old home than your old job was. For example, if your old job was located 10 miles from your old home, your new job must be located at least 60 miles from your old home to make your moving expenses tax-deductible. Evaluate whether your job situation meets the “time test.” Employees have to work at least 39 weeks during the year after the move. Self-employed people have to do the same, but they also have to work a total of 78 weeks during the two years following the move. Keep receipts for all moving expenses you incur including hiring movers, buying packing supplies, transporting your car and transporting your family, for example. Rec
