Did you know…
You do not need a corporate sponsored relocation package in order to take advantage of relocation benefits??
The IRS states, “You can deduct your moving expenses if you meet all three of the following requirements:
- Your move is closely related to the start of work
- You meet the distance test and
- You meet the time test.”
IRS Publication 521 outlines all the requirements for deducting moving expenses. It is not necessary that you arrange to work before moving to a new location, but you must go to work in that location to deduct the allowable expenses.
You must also be 50 miles further from your former home to your new work location than you were from your former home to your old work location.
The time test is 39 weeks for employees, 78 weeks for self-employed individuals. You must be employed for that length of time in order to take advantage of the deductible benefits.
To learn more about these deductible expenses and other exciting Relocation Benefits from the IRS, visit their website at http://www.irs.gov/pub/irs-
By: Susan Gilman
**Prudential PenFed Realty nor its affiliates are tax advisors nor do we represent the IRS. Please contact your personal accountant or attorney if you have questions**