Can I take a tax deduction on relocation within the same state?

Asked over 1 year ago - Moreno Valley, CA

I live over 60 miles from my work in Lakewood, CA. I have to wait until my rental lease expires before I can move. Can I take a tax deduction on the move (moving supplies, movers, truck, etc.) to my new residence? I am employed as a 1099 contractor.

Thanks so much!!

Attorney answers (3)

  1. Charles Adam Shultz

    Contributor Level 19

    2

    Lawyers agree

    Answered . As a simple matter no. This question, however, really is not appropriate for this forum because you are asking for a legal opinion and tax advice upon which you intend to rely for tax reporting purposes. That is something you need to pay for.

    The general advice above does not constitute an attorney-client relationship: you haven't hired me or my firm or... more
  2. Evan A Nielsen

    Contributor Level 18

    2

    Lawyers agree

    Answered . For the move to be deductible it needs to have been for purposes of accepting new employment. However, if you're a 1099 contractor you have several other options to explore that will likely help reduce your taxes more effectively than using moving expenses and I'm suspecting that's the real objective. Take advantage of our firm's free consultation or someone elses to review options.

    Best Regards,
    Evan

    Evan A. Nielsen is licensed to practice law in California and handles federal tax matters throughout the U.S. The... more
  3. John P Corrigan

    Contributor Level 19

    3

    Lawyers agree

    Answered . From IRS website (http://www.irs.gov/taxtopics/tc455.html

    Topic 455 - Moving Expenses

    If you moved due to a change in your job or business location, or because you started a new job or business, you may be able to deduct your reasonable moving expenses but not any expenses for meals. To qualify for the moving expense deduction, you must satisfy two tests. Under the first test, the "distance test," your new workplace must be at least 50 miles farther from your old home than your old job location was from your old home. If you had no previous workplace, your new job location must be at least 50 miles from your old home.

    The second test is the "time test." If you are an employee, you must work full-time for at least 39 weeks during the first 12 months immediately following your arrival in the general area of your new job location. If you are self-employed, you must work full time for at least 39 weeks during the first 12 months and for a total of at least 78 weeks during the first 24 months immediately following your arrival in the general area of your new work location. There are exceptions to the time test in case of death, disability and involuntary separation, among other things.

    If you are a member of the armed forces and your move was due to a military order and permanent change of station, you do not have to satisfy the "distance or time tests."

    Moving expenses are figured on Form 3903 (PDF), Moving Expenses, and deducted as an adjustment to income on Form 1040 (PDF). You cannot deduct any moving expenses covered by reimbursements from your employer that are excluded from income.

    For more information on deductible and nondeductible moving expenses, refer to Publication 521, Moving Expenses. Also refer to Publication 521 for information on moves to locations in and outside the United States.

    My answer is not intended to be giving legal advice and this topic can be a complex area where the advice of a... more

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