Moving Out of Home - Tips For Young People Moving Out of Home - Tips For Young People | Page 10
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You can pay Australia Post to redirect mail from your old address to your new address.
6.0 Moving Expenses
Moving expenses are potentially tax-deductible expenses that are incurred when an
individual and his or her family relocates for a new job or due to the location transfer of an
existing job. After certain baseline criteria are met for time and distance, individuals used
to be able to deduct qualifying expenses for roughly one year after beginning the new job.
The Tax Cuts and Jobs Act of 2017 eliminated this deduction for tax years 2018 through
2025, except for members of the military on active duty who move as the result of a
military order.
For members of the military who still qualify, here is how the tax deduction for moving
expenses works.
Basic categories of qualifying expenses include costs to pack and ship personal possessions,
temporary storage fees and transportation costs. Sometimes companies will pay for the
relocation of its employees or new hires, however there is often a cap on the amount.
BREAKING DOWN Moving Expenses
The key phrase to consider (at least in the eyes of the IRS) is "reasonable costs" for moving
yourself and your property. These costs include a moving van, storage unit and temporary
insurance used in travel. Some expenses that are generally not deductible include house-
hunting trips, meals during the move and the costs involved in selling an existing home.
If you are traveling by car to your new job location, the IRS states:
"If you use your car to take yourself, members of your household, or your personal effects
to your new home, you can figure your expenses by deducting either:
Your actual expenses, such as the amount you pay for gas and oil for your car, if you
keep an accurate record of each expense, or
The 2018 standard mileage rate of 18 cents a mile.
Whether you use actual expenses or the standard mileage rate to figure your expenses, you
can deduct the parking fees and tolls you pay to move. You can't deduct any part of general
repairs, general maintenance, insurance, or depreciation for your car." People wishing to
claim these deductions should keep good documentation of all potentially qualified
expenses.
7.0 Your Guide to Deducting Moving Expenses