Besides being stressful and requiring a lot of planning, moving to a new place also takes money. Costs for moving companies, advance deposits for your new residence, and maybe new furniture or remodeling you have in mind for your new place – all of it can strain your bank account. Whatever the reasons for your move, there is one more factor we must consider as well: taxes. We all know taxes are complex and change constantly, so it’s crucial to keep up with the latest information. Then, you may be wondering: are moving expenses tax deductible in 2021?
Percentage deductible: 100%
Eligibility:
The costs associated with transporting business equipment, supplies, and inventory typically qualify as deductible.
What Moving Expenses Are Deductible?
Suppose you do qualify for the moving expense deduction. Maybe you moved in 2021 to start a new job or to find work, or you’re active-duty military. Here are some things you need to know:
Only Direct Moving Costs are Deductible
For moves within the U.S., deductible expenses are those directly related to the move. This includes: