velte (02/11/83)
In filing my income tax this year, I am able to take deductions for moving expenses. To this end, I am using Form 3903 - Moving Expense Adjustment. This form has a line for entering the expense of setting up a new lease for renting a house. My question is: can I include the money that I had to put down for a security deposit in the cost of setting up a new lease? Your responses (BY MAIL) will be appreciated, summarized, and posted. Thanks in advance, Dennis Velte floyd!velte
udi@uwvax.ARPA (03/29/84)
I know that certain expenses of buying a house, such as points that are not considered interest and all kinds of fees, can be deducted as moving expenses. Does anyone know what is the time limit between the move and the purchase? In my case I bought the house 8 months after the move. Are those deductions apply to the year when the move took place or the year when the payments were made? I'll appreciate any suggestions. udi@uwisc (ARPA, CSNET) ....seismo!uwvax!udi
drv@eisx.UUCP (Dennis Vogel) (09/21/84)
A friend of mine moved to California at the beginning of 1984 and plans to move back to New Jersey before the end of 1984. The first move was paid for by her company and the second will be too. She thinks the cost of the move will be added to her gross salary. She is concerned about the tax consequences of these moves on her 1984 income tax. Is there any limitation about how many times one can take a tax deduction for moving expenses in a particular year? Any information on this issue is welcome. Dennis Vogel--AT&T Information Systems--S. Plainfield, NJ
coffler@grok.DEC (Jeff Coffler) (10/01/84)
I am currently getting settled after a cross-country relocation myself. All of the paperwork that I have read indicates that you must stay at the new location for at least 9 months, and that the new location must be at least n miles from the old location (n=100 or something around there, I think; since, for me, n=~3000, I didn't look very carefully).
dak@ihuxn.UUCP (Dave Krunnfusz) (10/02/84)
<> Back in 1980 or 1981, the law read that there must be 37 weeks between moves for both moving expenses to be tax deductible.
halle1@houxz.UUCP (J.HALLE) (10/02/84)
The 37 weeks between moves requirements is incorrect. The actual requirement is that you remain there for 39 weeks, 78 if self employed. There are also some 2 year restrictions, but they refer to house sales I believe. In any case, I don't think you have a problem. You were obviously at a temporary location for your employers convenience, so all expenses related to moving are deductable as business expense, and some living expenses, too. Your employer probably will not report it as income, or will gross it up if not deductable. In any case, consult an accountant.
grl@charm.UUCP (mh9478) (10/03/84)
You have just hit a tax bonanza. It sounds like you are not eligible for moving expenses. That's the good news. You are eligible for employee business expenses and probably a daily per diem!!!! Congratulations! q Hopefully, I'll find my way out of this editor q
tompkins@ttidcb.UUCP (Pete Tompkins) (10/30/84)
Moving expenses are generally deductable if you work full time in the new location for either 39 week in the first 12 months or 78 weeks in the first 24 months after the relocation. Self-employed probably must meet the 78 week test. (Code Section 217(c)(2)(B)) There is no limit to the direct expenses deducted. Some indirect expenses may be deducted within limits (cost of selling your home, looking for a new home, etc.) The limit is generally $1500 for premove househunting trips and temporary living expenses at the new location and $3000 total for the above and expenses of a house sale. (Reg 1.217-2(b)) Note the 39/78 week rule is waived if the second transfer is a re-transfer for the benifit of the employer "after obtaining full-time employmentin which the taxpayer could reasonably have been expected to satisfy such condition." (Code Sect. 217(d)) If the first move was seen (at the time of the move) as a temporary assignment away from home, there may be a more favorable treatment available which allows you to travelling expenses to and from the temporary assignment, in addition to reasonable expenses for meals and lodging in the city of the temporary assignment (IRS pub 463 - 11/80). Note however that if duplicate living expenses are not incurred then these expenses are probably not deductable (TC memo 1976-26).