When moving, many new homeowners are surprised by the hidden costs of the
move. From movers to cleaning supplies, these expenses can add up quickly. Some
of the costs of moving may be tax-deductible, though you should consult with an
accountant to make sure. In addition, many of these expenses can be avoided by
planning ahead.
The size of your move will have a significant impact on your moving costs. A local
move around the block or to another city is typically the least expensive, while an
international or interstate move can cost thousands of dollars. The longer your
move, the more time and materials movers will need to spend on packing and
transporting your belongings.
Some items require special care and handling. Antiques, artwork and musical
instruments are examples of items that need to be professionally packed so they
arrive at their destination without any damage. In most cases, movers will charge
extra to pack these items. In addition, specialty movers will often need to
disassemble furniture and provide wooden crating to protect the items.
You will also need to purchase a variety of packing supplies. These can include a
moving box kit, bubble wrap and tape. Alternatively, you can save money by
packing your own boxes. It takes a lot of effort, but can save you hundreds of
dollars. You will also need to purchase supplies for cleaning your old home and
preparing it for the next tenant, such as a mop, vacuum cleaner, broom and
cleaning sprays.
While you can usually predict how much it will cost to hire movers, there are many
other moving-related expenses that are more difficult to estimate. For example, you
will need to have utilities transferred to your name at the new location. This can cost
$100 or more, depending on the utility company and where your new home is
located. You will also need to pay for phone and Internet service at your new
location, which can be a surprise expense as well.
If you are a member of the Armed Forces, you can deduct some of your moving
expenses. In order to qualify, you must be on active duty, transferring because of a
permanent change of station and moving at the direction of the commander. You
must submit all receipts and a completed Moving Expense Reimbursement
Worksheet to your federal tax compliance manager and have the amount deducted
from your paycheck.
Other moving-related expenses can be tax deductible as well. For instance, you can
claim mileage and parking fees for travel between your old and new homes. You can
also claim meals and lodging during a house hunting trip, as long as you stay within
reasonable limits. Other deductions include a temporary storage fee for your
belongings and in-transit insurance. You can find more details on the IRS website. In
addition, any expenses that aren’t reimbursable by your employer must be paid out
of your own pocket. Taxes, social security and Medicare will be withheld from the
compensation you receive for these expenses. Umzugsskosten