Moving Expenses

[khopkins21]

Can the cost of a month's (up to 30 days) mortgage payment be deducted as moving expenses for a taxpayer with a work related move it meets all the other tests? All of the taxpayer's items are still being stored in the home. My theory is that this qualifies as storage expenses.

Any thoughts on this?

[taxea]

Moving Expenses

research Pub 17

[jainen]

My theory

>>My theory is that this qualifies as storage expenses<<

What do you base this theory on, K?

[khopkins21]

Moving Expenses

>>My theory is that this qualifies as storage expenses<<

What do you base this theory on, K?

I based my theory on the fact that he was unable to utilize the house for any other use (rental income, etc.) other than to store his belongings for that period. Also, if he has already made another place his residence, he is simply relying on the home as a storage unit until he finds a more suitable place for the items.

Opinions?

[jainen]

Tax theory

>>I based my theory on the fact that he.... <<

Tax theory should be based on the tax code, or at least the Congressional intent behind the tax code. If you base your tax theory on the "facts" of one particular taxpayer, you get lost in a puzzle of what is fair for all taxpayers who have different situations. This places your client in a position that can't be defended under the law. Taxpayers are required to follow the law, of course, regardless of what you may think about their particular circumstances.

The law says he can only deduct storage costs IN TRANSIT, after he moves out of his home and before he moves into the new home. That's why they're called "moving" expenses. It's a curious argument to say he can deduct moving expenses for not completely moving.

Besides, his specific facts don't even support the claim. Mortgage isn't a cost of storage. It is a cost of borrowing money for an entirely different purpose, and is not in the least related to whether anything is stored in the house or not. You can't take a deduction for expenses you didn't actually have but might have had if the facts had been different.

[khopkins21]

Is if safe to say...

Thank you for bringing me back to reality. I am a fairly new preparer looking for new breaks for clients and trying to interpret the less clearly defined laws on my own, which is not always easy.

Is it safe to say that he can deduct the expenses related to this move in two tax years. If he himself physically moved in 2006 but will have to make a seperate attempt to move the remainder of his possessions once new accomidations are found (in 2007), will those expenses still be deductible?

[jainen]

anything reasonable will work.

>>he can deduct the expenses related to this move in two tax years<<

Sure. I think there are some time limits, but anything reasonable will work.

[Gretel]

Jainen, this brings up a question I had some time ago. What do you think?

T/P made several trip with his own car over a period of time to get all his belongings from A to B. I only gave him one trip but maybe I was wrong?

[jainen]

The rule is

>>gave him one trip<<

The rule is one trip per person. But then, you get the cost of moving the furniture too. I don't think it's a big thing. When they changed the rules some time ago, the idea was to eliminate the "temporary housing" and househunting and other inflated claims during transition.

Maybe you could claim the one-way trips, but not the ones going back for another load.