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Getting a Tax Rebate - What Expenses Can You Deduct?

Moving and Taxes

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If you read Can You Deduct Your Moving Expenses?, and you passed the distance and time tests, meeting all the requirements, then you're ready to find out what part of your move you can deduct in order to obtain a tax rebate.

According to Publication 521, you can deduct the moving of your household goods and personal effects, including in-transit or foreign-move storage expenses, and costs associated with traveling to your new home; however, you cannot claim meals.

You can deduct only those expenses that are reasonable. For example, if, while moving to Syracuse, you and your family decided to take a detour and visit some sites, see the Grand Canyon and turn your move into a vacation, these additional "vacation" expenses are not deductible. Traveling costs must be for the shortest, most direct route between your old home and your new home.

Travel By Car

  • If you use your car to take yourself, members of your household, or your personal effects to your new home, you can deduct either your actual expenses, such as gas and oil for your car, or the standard mileage rate, which for 2004, was 14 cents per mile.

  • You can deduct parking fees and tolls, but cannot deduct general repairs, general maintenance, insurance, or depreciation for your car.

  • You can deduct moving expenses you pay for yourself and members of your household, meaning anyone who has both your old home and new home as his or her home.

Additional Travel expenses

  • You can deduct the cost of transportation and lodging for yourself and members of your household while traveling from your old home to your new home. This includes expenses for the day you arrive.

  • You can include any lodging expenses you had for one day after your move-out date because your furniture had been moved and you could not stay in your old home.

  • You can deduct expenses for only one trip to your new home for yourself and members of your household. Note that you do not have to travel together or at the same time.

Household Goods and Personal Effects

  • You can deduct the cost of packing, crating, and transporting your, and members of your household, household goods and personal effects, from your old home to your new home.

  • You can deduct any costs of connecting or disconnecting utilities.

  • You can deduct the cost of shipping your car and your household pets to your new home.

  • You can deduct the cost of moving your household goods and personal effects from a place other than your former home. Your deduction is limited to the amount it would have cost to move them from your former home.

    Note: you cannot deduct the cost of moving furniture you buy on the way to your new home.

Storage Expenses

  • You can include the cost of storing and insuring household goods and personal effects for up to 30 consecutive days after your things are moved from your old home and before they are delivered to your new home.

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