Publication 521 - Moving Expenses - 2011 (Page 9 of 19) in pdf

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Blacks’ deduction is $799.00 (Josh’s $399.00 + Robyn’s

Driver’s license.

$400).

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Expenses of buying or selling a home (including

closing costs, mortgage fees, and points).

Moves to Locations Outside the

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Expenses of entering into or breaking a lease.

United States

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Home improvements to help sell your home.

To deduct expenses for a move outside the United States,

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Loss on the sale of your home.

you must move to the area of a new place of work outside

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the United States and its possessions. You must meet the

Losses from disposing of memberships in clubs.

requirements under Who Can Deduct Moving Expenses,

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Mortgage penalties.

earlier.

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Pre-move househunting expenses.

Deductible expenses. If your move is to a location

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Real estate taxes.

outside the United States and its possessions, you can

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deduct the following expenses.

Refitting of carpet and draperies.

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The cost of moving household goods and personal

Return trips to your former residence.

effects from your former home to your new home.

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Security deposits (including any given up due to the

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The cost of traveling (including lodging) from your

move).

former home to your new home.

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Storage charges except those incurred in transit and

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The cost of moving household goods and personal

for foreign moves.

effects to and from storage.

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The cost of storing household goods and personal

No double deduction. You cannot take a moving ex-

effects while you are at the new job location.

pense deduction and a business expense deduction for

the same expenses. You must decide if your expenses are

The first two items were explained earlier under Moves to

deductible as moving expenses or as business expenses.

Locations in the United States. The last two items are

For example, expenses you have for travel, meals, and

discussed, later.

lodging while temporarily working at a place away from

Moving goods and effects to and from storage. You

your regular place of work may be deductible as business

can deduct the reasonable expenses of moving your per-

expenses if you are considered away from home on busi-

sonal effects to and from storage.

ness. In most cases, your work at a single location is

considered temporary if it is realistically expected to last

Storage expenses. You can deduct the reasonable ex-

(and does in fact last) for one year or less.

penses of storing your household goods and personal

See Publication 463, Travel, Entertainment, Gift, and

effects for all or part of the time the new job location

Car Expenses, for information on deducting your business

remains your main job location.

expenses.

Moving expenses allocable to excluded foreign in-

come. If you live and work outside the United States, you

Reimbursements

may be able to exclude from income part or all of the

income you earn in the foreign country. You may also be

able to claim a foreign housing exclusion or deduction. If

This section explains how to report a reimbursement (in-

you claim the foreign earned income or foreign housing

cluding advances and allowances) on your tax return. It

exclusion, you cannot deduct the part of your moving

covers reimbursements for any of your moving expenses

expenses that relates to the excluded income.

discussed in this publication. It also explains the types of

Publication 54, Tax Guide for U.S. Citizens and Resi-

reimbursements on which your employer must withhold

dent Aliens Abroad, explains how to figure the part of your

income, social security, and Medicare taxes.

moving expenses that relates to excluded income. You can

get the publication from most U.S. embassies and consu-

Types of Reimbursement Plans

lates, or see

How To Get Tax Help

at the end of this

publication.

If you receive a reimbursement for your moving expenses,

how you report this amount and your expenses depends

Nondeductible Expenses

on whether the reimbursement is paid to you under an

accountable plan or a nonaccountable plan. For a quick

overview of how to report your reimbursement and moving

You cannot deduct the following items as moving ex-

expenses, see Table 2 in the section on

How and When

penses.

Report, later.

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Any part of the purchase price of your new home.

Your employer should tell you what method of reim-

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Car tags.

bursement is used and what records are required.

Publication 521 (2011)

Page 9

Publication 521 - Moving Expenses - 2011 Page 9

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