Hi Mark Kohler here with another tax and legal tip. Let's talk about moving expenses. 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 from 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 are some ways to maximize the cost 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 are 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 a new location for a new job. That's right, 50 miles. Anything less than that, no write-off at all, and it has to be for new employment. Number two is the time test. The time test means that in 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 of 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 you want to take this write-off for last year, that's okay. If you were to get audited, you want to just...
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3903 instructions Form: What You Should Know
Form 3903, also called Form 3903-P, is a form for tax-free movement of personal property to and from a new principal place of work due to an immediate move. The rules for how these works are: The first step is to look to figure out whether your employer (or the new employer) will deduct all or part of your moving expenses. When moving to a different job from one in which you are already assigned, for example, your employer typically sends out a notice to the staff requesting them to fill out the form. If you are asked to fill out a Form 3903 and you have a home, apartment, home in foreclosure, or any other qualifying residence in which you are not in the active military or active-duty Reserve, don't fill out the form. Do not fill out Form 3903 if you do not own any kind of personal property that qualifies to be taken as a deduction. In other words, do not fill out Form 3903 if you are renting an apartment, home or any other property that is not actually your principal place of residence In general, if you are working in an office, do not attach items like office furniture and other objects to a Form 3903. You only have to fill out the form if it indicates an item that will be taken as a deduction when you go to a new job. In addition, if you do want to attach a letter or other document showing that you are making the move for a bona fide business reason, you need to attach proof of that at that time. Keep a copy of your receipts and your Form 3903 showing any moving expense deduction amount you paid for your services. What is tax-deductible on Form 3903? The rules for claiming deductions on Form 3903 vary depending on whether you are moving to a new job, from a previous job, or from your home to a new dwelling. To figure out the allowable deductions, you must have personal property (other than real property) that is valued a) before the beginning of the taxable year from which expenses related to the move are claimed, or b) that is purchased by you or your spouse before the beginning of the taxable year from which expenses related to the move are claimed.
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