Add Relocation Policy Mark with airSlate SignNow

Form N-139, Rev 2016, Moving Expenses. Forms 2016

hi mark Kohler here with another tax and legal tip let's talk moving expense what happened to the moving expense well you need to know the rules if you're preparing a 2017 or older tax return and what you have to plan for and 2018 until 2023 that's right whole new ballgame now if you've gone through the miserable experience of moving in 2017 as I did there's some ways to maximize this cost that you incurred on your tax return and get a deduction which could save you some taxes so let me tell you what the 2017 rules are and then it'll make more clear sense of what the 2018 rules are moving forward now for 2017 and earlier here's the rules you need to know number one is the distance test that's right distance you have to have moved at least 50 miles to new location for a new job that's right 50 miles anything less than that no right off at all and it has to be for new employment number two is the time test the time test means that this new location you have to have worked in the new job for at least 39 weeks of the last 12 months so what this means a couple other variations maybe is that when you move there you don't have to have a job right away but you better get one and work at least 39 weeks in that new job within 12 months of the move and keep in mind if you move in the fall and then you file your tax return and you're into the new tax year but I want to take this right off for last year that's okay if you were to get audited you want to just be able to show that within the twelve months of the move even if it's spam to tax years you worked at least 39 weeks of this new employment and number three your expenses need to be reasonable so just keep track of travel hotel mileage food any expenses to get you moved and then for your items moved you can write off your u-haul rental truck or Ryder truck or whatever and even a professional mover but you want to add up all those expenses and for 2017 or earlier you take all those they're gonna go on the front page of your tax return a great tax write-off not limited by AGI or your income level married filing single separate whatever it's all good it's a great write-off on the front page your tax return now in 2018 the game changed this is no longer a write-off that said it's that simple no more moving expense right off the only people that can take the moving expense our active-duty service men or women in the military that have to move because they're in active duty at the military and the 50-mile requirement doesn't apply so they might move bases that are closer than 50 miles to one another don't worry about it so servicemen and women we appreciate your service to our country and you get to take the moving expense on the front page of your tax return but for the rest of us no more now you might be frustrated by this but this is what the government does when they give us new tax legislation they give us some good things and they take away some other things to pay for those other good things and the government giveth and the government taketh away so this is one of the items that got axed so so sorry now one ancillary item as well for those big companies that are paying the moving expenses for their employees to move and was a big fringe benefit for some of you that maybe had a corporate job those are also curtailed and so some of these big employers may not be paying the moving expense or throwing down the gauntlet with nice perks when it comes to a move now you may be in a company that allows for that and gives you those right offs but just know that they're facing the same problem so maybe don't expect as much or just assume as much bottom line 2017 and earlier track the expense take it grab it use it moving forward be careful now in 2023 all of these new laws are gone and Congress is back at work trying to figure out what we get to keep and what we are going to have live with so anyway love it moving expense is out there for prior years and that's all hope it comes back and we can use it in years to come thanks so much for watching it if you found that helpful please look in the description below I've got links to my tax and legal library my QuickBooks training videos how to start a small business 50 60 70 videos some as long as 30 minutes explaining more information on tax and legal strategies that will change your life also if you'd like to subscribe to my newsletter or check out my social media links please click here there weekly free tips and strategies and articles that you'll find extremely helpful and I would appreciate it if you subscribe to my channel I've got so many videos here I produce every week on my youtube channel and I'd love to give you a ping every time I shoot a new video thanks so much and keep living the American dream