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Old 08-13-2003, 11:53 AM
D. Stussy
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Default "Temporary" - was Re: Moving Expenses and Taxes

Herb Smith wrote:
- quote -

> "Inka Dinka" <inkdainkd12[at]yahoo.com> wrote:

> ...
> > If so, is there a limit on how long I can stay
> > in temporary housing?


> No, you can live in an apartment as long as you want. Just
> don't ask the taxpayers to foot the bill :-) When does
> "temporary" become "permanent"?


Although not in this context, the Tax Court did release an
opinion this month (August 2003 as a TC Memo) that indicated
that "temporary" (in the context of "temporary regulation" -
pre IRC 7805(e)) has a life of at least 12 years! In
7805(e), Congress said 3 years. Take this ruling in
combination with statute for moving expenses, and one can
argue for 120 days or more with regard to "temporary living
expenses!" :-)

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  #1  
Old 08-12-2003, 01:03 PM
Herb Smith
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Posts: n/a
Default Re: Moving Expenses and Taxes

"Inka Dinka" <inkdainkd12[at]yahoo.com> wrote:

- quote -

> I will be moving soon as a result and was wondering about
> the tax deductability of some expenses that I will incur as
> part of the move. Most of the cost of moving will be
> covered by my new employer but there are additional expenses
> that they will not pay for.
> I will be staying in an apartment until I find and buy a new
> house. My employer will be covering the cost for the first
> 30 days but after that I have to pay. Is the expense of
> temporary housing (beyond 30 days) tax deductable?


No. You have to live somewhere.

- quote -

> While I
> am in temporary housing, my belongings will be stored by a
> moving company (employer is paying for the movers and 30
> days of storage). Is the storage cost beyond 30 days tax
> deductable?


No.

- quote -

> If so, is there a limit on how long I can stay
> in temporary housing?


No, you can live in an apartment as long as you want. Just
don't ask the taxpayers to foot the bill :-) When does
"temporary" become "permanent"?

- quote -

> I will need to ship some things via UPS so that they are
> available immediately in the temporary housing (mostly baby
> stuff). Employer will not pay this cost. Is it tax
> deductable?


See Pub 521

- quote -

> What about the transition costs (new drivers license, new
> car registration, etc.)? Deductable?
> If there are any good websites that cover this subject, I'd
> love to hear about them.


Go to www.irs.gov and get Pub 521. All your questions are
answered there. Relocation costs, as opposed to moving
expenses, are NOT deductible.

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Old 08-12-2003, 12:25 PM
Phil Marti
Guest
 
Posts: n/a
Default Re: Moving Expenses and Taxes

"Inka Dinka" <inkdainkd12[at]yahoo.com> writes:

- quote -

> I will be moving soon as a result and was wondering about
> the tax deductability of some expenses that I will incur as
> part of the move. Most of the cost of moving will be
> covered by my new employer but there are additional expenses
> that they will not pay for.


Get a copy of IRS Publication 521. I've snipped the rest of
your post, but it sounds like your employer has a pretty
good reimbursement plan. That's good news, but from a tax
standpoint it means that you will probably have additional
income, not a deduction, from the move. The last time
Congress tinkered with this provision they made many
previously-deductible expenses nondeductible.

Phil Marti
Topeka, KS

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  #-1  
Old 08-11-2003, 09:41 AM
Inka Dinka
Guest
 
Posts: n/a
Default Moving Expenses and Taxes

I will be moving soon as a result and was wondering about
the tax deductability of some expenses that I will incur as
part of the move. Most of the cost of moving will be
covered by my new employer but there are additional expenses
that they will not pay for.

I will be staying in an apartment until I find and buy a new
house. My employer will be covering the cost for the first
30 days but after that I have to pay. Is the expense of
temporary housing (beyond 30 days) tax deductable? While I
am in temporary housing, my belongings will be stored by a
moving company (employer is paying for the movers and 30
days of storage). Is the storage cost beyond 30 days tax
deductable? If so, is there a limit on how long I can stay
in temporary housing?

I will need to ship some things via UPS so that they are
available immediately in the temporary housing (mostly baby
stuff). Employer will not pay this cost. Is it tax
deductable?

What about the transition costs (new drivers license, new
car registration, etc.)? Deductable?

If there are any good websites that cover this subject, I'd
love to hear about them.

Thanks.

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->
 

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expenses, moving, taxes
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