In this economic climate it’s not unusual for people to relocate to take a new job or start a new business. If you are one of those people, Uncle Sammy just might want to give you a tax break. If you moved due to a change in your job or business location, or because you started a new job or business, you may be able to deduct your reasonable moving expenses. To qualify for the moving expense deduction you must satisfy two tests.

The first test is the “distance test.” Your new job must be located at least 50 miles farther from your old home than your old job location was from your old home. If you had no previous workplace, your new job location must be at least 50 miles from your old home.

The second test is the “time test”. If you are an employee, you must work full-time for at least 39 weeks during the first 12 months immediately following your arrival in the general area of your new job location. If you are self-employed, you must work full time for at least 39 weeks during the first 12 months and for a total of at least 78 weeks during the first 24 months immediately following your arrival in the general area of your new work location. There are exceptions to the time test including case of death, disability, and involuntary separation, among other things.

If you are a member of the armed forces and your move was due to a military order and permanent change of station, you do not have to satisfy the distance or time tests.

Speaking of moving, we’re moving our offices to 28080 Main Road in Cutchogue (across the street from Karen’s Deli). Unfortunately we do not qualify for the moving expense deduction! Please stop in and say hello and check out the latest in pocket protector fashion accessories.