This is Part Two of Kathy Bates Scary Dependents Blog post.
The second issue with this commercial relates to moving expenses. If you move and find out a house is haunted and decide to move to the house down the street that isn’t haunted, the IRS won’t be too happy if you attempt to deduct those moving expenses. These moving expenses would need to directly relate to starting a new job or job relocation. The IRS welcomes you to deduct moving costs if you meet the following requirements:
Distance – You cannot deduct the move within the same town. The distance between your new job and your former home must be at least 50 miles farther than your previous employer is from that home. For example, if your previous commute to work was ten miles each way, then the distance from your new job location to your old home must be at least 60 miles.
Time - You must work full time for at least 39 weeks during the first 12-month period after your move. Basically, you can’t move and take a year off and then start a new job, you need to have work lined up or know you will find a new job soon.
If you did not meet the time test and have already claimed the deduction in the year of the return, you must re-claim some of that deduction. Deductible expenses include costs to move your household goods and personal affects, as well as travel and lodging to your new home. Meals are not included.
The Skinny: Yes. Moving expenses can be deductible, but not when you are moving because of the ghosts living in your home.
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