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Author: Dotdotslash Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121219  
Subject: Relocation/Layoff question Date: 10/17/2001 12:05 AM
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Hi,

Much earlier this year, I relocated to San Jose to work for now, all but defunct, Globalstar. I had $11,239 in taxed relocation expenses reported on my pay stub. This includes about $4000 for two months corporate house, $5000 to move my goods and the rest was a month of per diem and a couple of plane tickets. Because I was laid off I believe I can deduct some of these expenses($5000 to move goods) from my taxes. My problem is this, the company handled all the details of the relocation and I have no record of what was spent on what. I've made numerous calls, but I'm not getting any response. I dont' even know who is still left. Any ideas how I should go about reporting this on my return. What happens if I get audited and have no detailed record. Please help.
Thanks!
Nate
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Author: sipote1 One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 54657 of 121219
Subject: Re: Relocation/Layoff question Date: 10/17/2001 12:22 AM
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IRS is pretty clear on this one...You can not deduct expenses reimbursed by your employer.

jf

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Author: Dotdotslash Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 54659 of 121219
Subject: Re: Relocation/Layoff question Date: 10/17/2001 12:44 AM
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sipote1,

Are you sure? The reimbursement was included in my income and I paid taxes on it.
Nate

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Author: Dotdotslash Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 54660 of 121219
Subject: Re: Relocation/Layoff question Date: 10/17/2001 12:57 AM
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Actually, I wasn't reimbursed. The company paid for it, included the amount in my income and then I paid taxes on it.

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Author: acm4tax Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 54663 of 121219
Subject: Re: Relocation/Layoff question Date: 10/17/2001 2:48 AM
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Your employer is supposed to provide you with details of any amounts added to your W-2.

The following expenses are deductible:

Traveling costs of yourself and your members of your household en route from your old to the new locality.
You include the costs of transportation and lodging for yourself and household members while traveling to your new residence. Lodging before departure for one day after the old residence is unusable and lodging for the day of arrival at the new locality are included. If you use your own car, you may either deduct your actual costs of gas, oil, and repairs (but not depreciation) during the trip or take a deduction based the rate of 10 cents a mile. Also add parking fees and tolls. Meals expense are NOT a deductible moving expense.

The actual cost of moving your personal effects and household goods
This includes the cost of packing, crating, and transporting furniture and household belongings, in-transit storage up to 30 consecutive days, insurance costs for the goods, and the cost of moving a pet or shipping an automobile to your new residence. You may also deduct the expenses of moving your effects from a place other than your former home, but only up to the estimated cost of such a move from your former home. This does not include the shipping cost of furniture you may purchase en route from your old home. Also deduct the cost of connecting or disconnecting utilities when moving household appliances.

The cost of connecting a telephone in your new home is NOT deductible. Also not deductible is the cost of refitting rugs and drapes, forfeited tuition, car tags or drivers licenses for the state you move to, mortgage penalties, expenses for trips to sell your old house. Nor can you deduct the cost of pre-move house hunting trips, temporary living expenses, or expenses related to the selling, purchaseing or leasing the old or new residence. Meals expenses while traveling to your new residence are not deductible either.

There are two tests to meet in order to be able to deduct moving expenses. One is the distance test which is 50 miles or more than the distance between your old job location and your former home and your new job location and your former home.

The other is that if you are an employee, that you MUST work in the locality of the new job as a full time employee for at least 39 weeks during the 12 month period immediately following your arrival at the new job location. The 39 week test does not apply to employees who become disabled and lose their jobs or who die. If you are temporarily absent from work through no fault of your own, due to illness, strikes, shutouts, layoffs, or natural disasters, your temporary absence is counted in the 39 weeks.

Maybe this is more information than you require, but if your moving expenses will be added to your W-2, you will have to somehow recompute your moving expenses. Hopefully you have kept some kind of log or receipts or a duplicate copy of any expense reports you turned into your employer. If your company paid the moving company directly, that amount should NOT be included in your W-2. Maybe the $5000 you received as a moving allowance was supposed to be for other moving related expenses that may or may not be deductible. It is for that reason that I gave you such a detailed listing of what may be deductible and what is not.

Best wishes finding another job and in finding the supporting documents you will need to take a moving deduction on Form 3903.

acm4tax@excite.com

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