Author Topic: Deducting moving expenses for remote work  (Read 173 times)

Paul der Krake

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Deducting moving expenses for remote work
« on: October 05, 2018, 11:13:06 AM »
I am having trouble understanding the rules around deductibility of moving expenses when it comes to remote work.

Assume 3 companies:
Company A is based in Dallas
Company B is based in Miami
Company C is based in Los Angeles

A worker currently works for A in Dallas as a regular full time W-2 employee and wants to move to Miami. None of the companies are willing to pay for moving expenses. Company A and C are okay with having a worker work remotely but otherwise have no presence in Miami (e.g. the move isn’t “necessary” for work purposes). In which scenario(s) can the worker deduct their moving expenses after moving to Miami?
1) continue to work remotely for A full time
2) continue to work remotely for A, but go part-time
3) quit A and start working for local company B in Miami full time
4) quit A and start working for local company B in Miami part time
5) quit A and start working for company C full time
6) quit A and start working for company C part time
7) quit A and start a part time self-employment gig, working for company A or C, as a contractor
8) quit A and start a part time self-employment gig, working for local company B, as a contractor

I've read the IRS publications on moving, but the underlying assumption in those guides is that employees work for local companies.

terran

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Re: Deducting moving expenses for remote work
« Reply #1 on: October 05, 2018, 11:56:00 AM »
Unless you're part of military or moved before 2018 the Tax Cuts and Jobs Act eliminated the moving expense deduction.

https://www.irs.gov/pub/irs-dft/i3903--dft.pdf

Paul der Krake

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Re: Deducting moving expenses for remote work
« Reply #2 on: October 05, 2018, 12:01:26 PM »
Ooops. Somehow I completely missed this news.

This answers all of my questions then, not joining the military any time soon.

terran

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Re: Deducting moving expenses for remote work
« Reply #3 on: October 05, 2018, 12:12:16 PM »
:-)

Simple, but not welcome news. Just glad we moved last year. Next time we'll have to try to get the new company to gross up the reimbursement to cover taxes.