Extended Benefits of Shipping Your Car – Tax Refunds
Moving Expense Deductions Have Been Eliminated By The Tax Cuts and Jobs Act of 2017, signed into law on December 22, 2017
It’s that time of year again – tax season! As the deadline looms closer and closer, you’re working on collecting all the proper documents. I’m sure you are all familiar with the standard forms like W-2s, 1098-E student loan interest and 1098 home mortgage interest. But if you have moved in the last tax year, you may be missing out on some valuable deductions. If you utilized a car shipping company to move your vehicle you are probably eligible for an additional deduction. We’ll explain how your auto transport could increase your tax refund this year.
Do You Qualify for a Tax Write Off?
The IRS has 3 areas they check to see if your relocation qualifies for a tax reduction.
- Timing is Everything: How closely did your move correspond with the start date of your new employment?
- Distance Test: How far away is your new position from your old home?
- The Test of Time: How long did you stay at your new position after your move?
Did You Get Reimbursed?
Even if you get reimbursed for your moving expenses, you may be able to deduct a portion of your expenses. Check with your tax professional to verify what type of reimbursements are deductible.
What Can You Write Off?
If you meet all the requirements above, you’re a good candidate to start collecting documents for your car shipping deduction. Make sure to ask for a copy of an invoice from the company who shipped your vehicle.
Tax Deductible Moving Expenses
If you move for a job, including a first job as a new graduate, it’s worth your while to look into this deduction. If you use a tax professional to help you, make sure to mention this part of relocating to them so you get your proper deduction. If you do your taxes yourself, make sure you don’t skip this part of your preparation. And if a relocation is in the works for you this year, make sure you check out our auto shipping tips to start you on the right track.