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Here's a question for you... Last year I took a new job in the DC area and had to move from South Carolina. We saved all the receipts for expenses at the time and we're going to deduct those expenses from 1999's income.

But, at the time we moved, the cost of living was so different and we were so unsure of the job, that I put a large portion of our stuff in storage in SC where it's much cheaper. Finally, last week we went and got all of our stuff. I know that the initial expenses for moving are deductible, but I'm curious if any of the after effects can be deducted as well. Probably not for the months of storage, but what about the moving van on the second trip. This is stuff that I already owned, just had to wait to get.

If anyone has any comments, I'd appreciate the help!
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<< Here's a question for you... Last year I took a new job in the DC area and had to move from South Carolina. We saved all the receipts for expenses at the time and we're going to deduct those expenses from 1999's income.

But, at the time we moved, the cost of living was so different and we were so unsure of the job, that I put a large portion of our stuff in storage in SC where it's much cheaper. Finally, last week we went and got all of our stuff. I know that the initial expenses for moving are deductible, but I'm curious if any of the after effects can be deducted as well. Probably not for the months of storage, but what about the moving van on the second trip. This is stuff that I already owned, just had to wait to get. >>

Without any research, I think you can. Please check the FAQ and IRS Publication 521 to see if there's something lurking there that I don't recall.

Phil Marti
Tax Preparer
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<<But, at the time we moved, the cost of living was so different and we were so unsure of the job, that I put a large portion of our stuff in storage in SC where it's much cheaper. Finally, last week we went and got all of our stuff. I know that the initial expenses for moving are deductible, but I'm curious if any of the after effects can be deducted as well. Probably not for the months of storage, but what about the moving van on the second trip. This is stuff that I already owned, just had to wait to get. >>

As you note, storage is not a qualified moving expense. The additional transportation of the stored goods is a close call.

The regs say that qualified moving expenses include moving household goods and personal effects to the taxpayer's new residence from a place other than his former residence, so long as such transportation costs do not exceed the allowable costs for such goods if moved from the taxpayer's former residence. So if there is an "additional" charge involved, you might have some problems.

Not an easy question.

TMF Taxes
Roy
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Also, keep in mind that there is a mandatory "time at new job" before you qualify for ANY tax breaks for moving expenses.

I think it is something like 36 or 37 weeks in the next year (at your new job, in your new town), but PLEASE don't quote me on this, as I don't remember the exact figure. Go look it up!

--AF : )
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