Moving and taxes (maybe moving again....)

[msggunny]

So, looks like I may be doing my first USG unassisted move ever.

Who has done it and what kind of a deduction did you get on taxes?

Trying to weigh the pros/cons of another move and how to offset the cost if the company says "no" to my reimbursement request.

Thanks.

 

[chris snell]

San Antonio heat getting you down, eh?

 

[msggunny]

San Antonio heat getting you down, eh?

No, not really. San Antonio is not really my kind of town but the heat here isnt that bad. Costal NC was worse, oppressive humidity with out a break. Here ist only irritating.

Had an offer that I would be stupid to refuse. It was what I was looking for when I retired but they didnt have any openings, now that they do they head hunted me and I am looking for reasons not to go. If I cant find more "cons" it looks like we are moving, again. FML.

 

[seventyfive]

where is the position located?

a lot of us military brats/veterans have been lots of places, maybe we can give you more pros or cons if we knew the potential location.

for a small fee there can also be a recon mission planned and carried out for better intel. you know for the important shit, quality of the strip clubs, quality of liquor stores, is the school district good for the little one, is the local female population adequate enough for the wife to socialize with, etc.

fwiw, dont care what the local texans say about san antonio. i was there for a couple weeks at a trade show. fuck that place. motherfuckers drive 45 mph on the highway, hot as shit WITHOUT humidity (man i honestly love humid hot days), some dickhead pulled a knife on me on the waterway walk thing after coming out of hooters, the chicks are hot and friendly though, and i dont speak spanish so i was fucked the minute i got off the plane.

 

[knewsom]

I believe (from what I remember) the entire cost of your move is tax deductible. If you're moving to a different state or District, you may even get a tax credit for showing up. We did when we moved to DC, and coupled with the moving deduction, we actually got a tax return (which is unusual for us, usually we owe since I get screwed as a freelancer). Next year's taxes basically hosed us though, so I hope you won't be moving to the District of Columbia. That place is fucked up.

 

[msggunny]

where is the position located?

Thanks for the offer of assistance but i know the area very well, spend 9 or so years there off and on.

If I pull the trigger on this we will be looking for somewhere between wilmington and jacksonville nc.....

 

[kennith]

Thanks for the offer of assistance but i know the area very well, spend 9 or so years there off and on.

If I pull the trigger on this we will be looking for somewhere between wilmington and jacksonville nc.....

There's nothing much between the two.

Just pick a nice country lot closer to Wilmington than Jacksonville and be done with it.

Cheers,

Kennith

 

[msggunny]

There's nothing much between the two.

Just pick a nice country lot closer to Wilmington than Jacksonville and be done with it.

Cheers,

Kennith

Thats what i am looking for, im not working on the main part of lejeune, i will be closer to sneeds ferry. Stone Bay.

 

[seventyfive]

... somewhere between wilmington and jacksonville nc.....

so government job. good for you, i should have done the same. listen to kennith on this one shipmate, wilmington is far better than jacksonville.

 

[Buddy]

Lived in Wilmington for about 8 years and I agree it's way better than Jacksonville. As far as the comment that the entire move is deductible, that's not necessarily correct. A lot of things are and if you do it right you can deduct a lot of your expenses. But a blanket statement like that is just wrong. Unless you subscribe to the theory that everything is deductible until you're audited. Which I have known a few people that used that method.

As a CPA and tax accountant the best advice I can give you is do your home work and don't use HR Block.

 

[msggunny]

As a CPA and tax accountant the best advice I can give you is do your home work and don't use HR Block.

I meet the criteria for the 50 mile relocation but I am a bit confused about the "time test". Per the IRS Form 3903 it states:

"If you are an employee, you must work full time in the general area of your new workplace for at least 39 weeks during the 12 months right after you move. If you are self-employed, you must work full time in the general area of your new workplace for at least 39 weeks during the first 12 months and a total of at least 78 weeks during the 24 months right after you move."

But does that mean the 39 weeks of the 12 month calendar year or just 12 months total?

Im not looking for any additional scrutiny from a government agency so I will make sure all is kosher on my claim. Looking at the form I can claim:

"the amount you paid to pack, crate, and move your household goods and personal effects. You can also include the amount you paid to store and insure household goods and personal effects within any period of 30 days in a row after the items were moved from your old home and before they were delivered to your new home."

and:

"the amount you paid to travel from your old home to your new home. This includes transportation and lodging on the way. Include costs for the day you arrive. The members of your household do not have to travel together or at the same time. But you can only include expenses for one trip per person. Do not include any househunting expenses.
If you use your own vehicle(s), you can figure the expenses by using either:
? Actual out-of-pocket expenses for gas and oil, or
? Mileage at the rate of 23 cents a mile.
You can add parking fees and tolls to the amount claimed under either method."

Wilmington vs J-Actionville? No brainer, Wilmington....

 

[Buddy]

Looks like you have a good idea already. Don't quote me on this it's been a while since I've done individual moving expenses. But without going and looking at the regulations. I would interpret that to be 39 weeks in the 12 months following the move. For example if you moved in January, and didn't start your job until July you would not be able to deduct the expenses. Now that might seem reasonable to the average person but you'd be surprised at what people will try to deduct. Also this is to keep people from taking a job for a few weeks after they move and then quieting just to deduct the moving expenses. In a nut shell that is to make sure you're moving for a job and not just moving and trying to use a job to deduct the expenses.

It should not be tied to the calendar year because expenses are typically deductible when incurred. So if they made you wait 39 weeks after the move to deduct them that could very well be in the next tax year. So you would not be able to deduct the expenses until a year after you paid them and that's not reasonable. Contrary to popular opinion most (not all) of the IRS regulations actually are fairly reasonable and make logical sense when you look at the reasoning behind them.

As for what you can deduct you're pretty much right on the money. There is some room for interpretation of "the amount you paid to travel" but as long as you reasonable you should be fine. The expenses just need to actually be related to the move. If I remember correctly there are certain other items that might be deductible such as disconnecting or connecting utility services required because of moving your things.

Depending on what your driving the 23 cents per mile might be better. But that does not include the moving truck if you're renting one. You can only deduct the fuel on that.

Edit:
This is not an official source but seems to be a reasonable guide and might help.
http://www.1040.com/federal-taxes/deductions/moving-expenses/

 

[WNYDiscoIIErik]

Perhaps you will win the latest L8 contest that includes Free Oil Changes for Life and an all expenses paid relocation to a destination of your choice!

 

[1920SF]

No idea on the moving stuff b/c I'm still institutionlized but I've got peeps that work on the side of base, prob in the same area you are going to work in-quite a few of them live in N. Wilmington, Topsail, etc. Coming off my last float before PCS'ing I was crashing between Holly Ridge & Surf City off 210; decent neighborhood and as you know you get a lot for your housing dollar. Good luck with the move and depending on who/what you've hooked up with hit me on the side if desired.
R-
Ray

 

[1920SF]

Double post...damn ipad

 

[draaronr]

Hey coming back I see, sweet. Hit me up. I'm up in Scotts Hill, looks like you will end up in Hampstead area guessing?

 

[LRflip]

I knew you'd be back....

 

[crown14]

Jesus, why dont you just get a motorhome.