NATIONAL MOVING COMPANY  ::  MOVING CHECKLIST  ::  FIND REAL ESTATE AGENTS  ::  MOVING TIPS & GUIDES  ::  CAR/VEHICLE TIPS  ::  INTERNATIONAL LEGALITIES
MoverMAX Home: Click here! MoverMAX Home
MOVING DIRECTORY
Movers Guides Real Estate Supplies Car Move Mortgage
MoverMAX.com .::. Plan your move using the best mover, our guides and moving checklists Planning to move? MoverMAX can help you find moving companies and provide all the resources for your complete move!
MoverMAX.com .::. Plan your move using the best mover, our guides and moving checklists   Moving Quotes and Checklists from Movers ... One Free Resource ... One Easy Form
MoverMAX.com .::. Plan your move using the best mover, our guides and moving checklists MoverMAX.com .::. Plan your move using the best mover, our guides and moving checklists
ONLINE ESTIMATE
  Moving Companies

Car / Bike / Boat Move

National Move

YOU-Pack, They Move

International Move

Truck Rental
MOVING GUIDE
  Moving Tips

Moving Children

Do-It-Yourself Guide

Self Move Tips

Packing Guide
STORAGE
  Self Storage

Storage Locator


Pickup &
Delivery
SUPPLIES
  Accessories

Boxes

Moving Packages

MORE...
LINKS
  local moving

national movers

car movers

car movers
ADDRESS CHANGE
MOVING Agent
EMAIL a friend
SITE MAP
 

Examples of Tax-Deductions .:

Tom Smith is married and has two children. He owned his home in Detroit where he worked. On February 8, his employer told him that he would be transferred to San Diego as of April 10 that year. His wife, Peggy, flew to San Diego on March 1 to look for a new home. She put a down payment of $25,000 on a house being built and came back to Detroit on March 4. The Smiths sold their Detroit home for $1,500 less than they paid for it. They contracted to have their personal effects moved to San Diego on April 3. The family drove to San Diego where they found that their new home was not finished. They stayed in a nearby motel until the house was ready on May 1. On April 10, Tom went to work in the San Diego plant where he still works.

His records for the move show:
1) Peggy's pre-move househunting trip:
Travel and lodging $  449
Meals         75 $  524
2) Down payment on San Diego home 25,000
3) Real estate commission paid on sale of Detroit  home 3,500
4) Loss on sale of Detroit home (not including real  estate commission) 1,500
5) Amount paid for moving personal effects  (furniture, other household goods, etc.) 8,000
6) Expenses of driving to San Diego:
Mileage (Start 14,278; End 16,478)  2,200 miles at 10 cents a mile $  220
Lodging 180
Meals        320 720
7) Cost of temporary living expenses in San Diego:
Motel rooms $1,450
Meals      2,280      3,730
Total    $42,974

Tom was reimbursed $10,599 under an accountable plan as follows:
Moving personal effects $ 6,800
Travel (and lodging) to San Diego 400
Travel (and lodging) for househunting trip 449
Lodging for temporary quarters 1,450
Loss on sale of home      1,500
Total reimbursement    $10,599

Tom's employer gave him a breakdown of the amount of reimbursement.

The employer included this reimbursement on Tom's Form W-2 for the year. The reimbursement of deductible expenses, $7,200 ($6,800 + $400) for moving household goods and travel to San Diego, was included in box 13 of Form W-2. His employer identified this amount with code P.

The employer included the balance, $3,399 reimbursement of nondeductible expenses, in box 1 of Form W-2 with Tom's other wages. He must include this amount on line 7 of Form 1040. The employer withholds taxes from the $3,399, as discussed under Nondeductible expenses, earlier. Also, Tom's employer could have given him a separate Form W-2 for his moving reimbursement.

Tom figures his deduction for moving expenses as follows:
Item 5, moving personal effects (line 1) $8,000
Item 6, driving to San Diego ($220 + $180) (line 2)        400
Total deductible moving expenses (line 3) $8,400
Minus: Reimbursement included in box 13 of  Form W-2 (line 4)      7,200
Deduction for moving expenses (line 5)     $1,200

Tom enters these amounts on Form 3903 to figure his deduction. His Form 3903 and Distance Test Worksheet are shown later. He also enters his deduction, $1,200, on line 26, Form 1040.

Nondeductible expenses. Of the $42,974 expenses that Tom incurred, the following items cannot be deducted.

  • Item 1, pre-move househunting expenses.
  • Item 2, the down payment on the San Diego home. If any part of it were for payment of deductible taxes or interest on the mortgage on the house, that part would be deductible as an itemized deduction.
  • Item 3, the real estate commission paid on the sale of the Detroit home. The commission is used to figure the gain or loss on the sale.
  • Item 4, the loss on the sale of the Detroit home. The Smiths cannot deduct it even though Tom's employer reimbursed him for it.
  • Item 6, the meals expenses while driving to San Diego. (However, the lodging and car expenses are deductible.)
  • Item 7, temporary living expenses.

Form 3903--Smith

Back to Top

More information on Moving and Your Taxes from the IRS

Find Professional Moving Companies with Mover MAX

.:

Recommended Move  Links
MoverworX Moving Software Recommended Move  Links
Recommended Move  Links
Recommended Move  Links
Penske Moving Truck Rental discount through Movermax.com Recommended Move  Links
Recommended Move  Links
homeframe ::: apply for free mortgage approvals
Recommended Move  Links
Pack Rat Professional Moving container Recommended Move  Links
Recommended Move  Links
Recommended Move  Links
Movingfinde Cheap Movers Recommended Move  Links
Recommended Move  Links
Recommended Move  Links
Upack Services - You Pack, We Drive, You Save Recommended Move  Links
Recommended Move  Links
Recommended Move  Links
Find+maps+at+MAPQUEST Recommended Move  Links
Recommended Move  Links


MoverMAX.com .::. The web's #1 source for moving and relocation MoverMAX.com .::. The web's #1 source for moving and relocation MoverMAX.com .::. The web's #1 source for moving and relocationMoverMAX.com .::. The web's #1 source for moving and relocation
  Moving Estimate MoverWorx® About Us Contact Us Moving Software & Leads Management    
  Get Leads! Make $ with Us Affiliate LOGIN Careers CONTAX Login  Site Map       Links    
  Residential Moving Resources: Movers Long Moving Residential Moving Professional Moving    
  Copyright © 2002 - 2004, GINGON Solutions, Inc. All Rights Reserved.   Disclaimer