How were the moving fees determined
Moving costs in the tax return: How can I deduct my move for tax purposes?
You can deduct moving costs from income tax. It depends on whether you have moved for professional or private reasons. Depending on the situation, different rules apply: the moving costs can be stated as business expenses, business expenses, special expenses, household-related services or exceptional charges in your tax return.
We will show you the conditions under which the deduction in the tax return is possible.
Tax deductible relocation: What applies to the tax return for professional relocation costs?
If you have moved for professional reasons, you can deduct the expenses as business expenses - analogous to travel expenses, study or computer, for example. These situations are considered professional reasons for moving:
- Relocation because of starting a new job for the first time, because of a change of job or a transfer
- Relocation in connection with double housekeeping for professional reasons
- The move will reduce the daily travel time (there and back) by at least 1 hour, leaving a daily travel time that is considered normal in rush hour traffic. In the case of spouses, the times saved may not be added together.
- The move is made out of the overwhelming interest of the employer, e.g. B. when moving into a company apartment when starting work or moving out of a company apartment after retirement.
If the professional reason for moving is established due to a reduction in travel time of at least one hour, private accompanying circumstances - such as marriage or increased housing requirements due to the birth of a child - take a back seat.
To what extent is it possible to deduct income-related expenses for moving costs in the tax return?
You can deduct the move for tax purposes with the actual moving costs up to the maximum amount that can be reimbursed by a civil servant as compensation for moving costs according to the Federal Moving Costs Act (BUKG) and the Foreign Moving Costs Ordinance (AUV). If higher costs than those specified in the BUKG are proven and claimed, it must be checked whether and to what extent there are non-deductible living costs (e.g. expenses for the purchase of new furnishings). Therefore: State your moving costs in your tax return.
The deductible costs include in particular:
- the expenses for the transport of the removal goods with packing and unpacking
- Travel expenses for a trip in preparation for the move
- the moving trip itself
- Rent compensation for a maximum of 6 months if rent had to be paid for the previous and the new apartment at the same time
- Expenses to get a rental apartment, e.g. B. Brokerage costs, viewing costs
- Expenses for additional tuition due to relocation (tuition) for the children up to a maximum of EUR 2,045 per child (from March 2020 EUR 2,066)
- other moving expenses, e.g. B. Re-registration fees, telephone connection costs, installation of kitchen appliances and lamps, etc.
Flat rate for other moving expenses
For other moving expenses, a lump sum is deductible without proof of costs. This is for Single EUR 811 (from March 2020 EUR 820), For Married couples, civil partners and equivalent persons EUR 1,622 (EUR 1,639) and for each other person living in the household (e.g. children) each further 357 EUR(361 EUR). If another job-related move has taken place within the last five years, a surcharge of 50% is added to the lump sums.
Danger: The lump sum cannot be taken into account in the tax return if you move into or leave a second home as part of a double household.
The following expenses cannot be deducted even if the move is professional:
- Losses and expenses when selling the previous home or house in which the previous apartment was located, e.g. B. Brokerage fees, early repayment penalties
- Brokerage fees for the purchase of a single family home at the new place of work
- Furniture storage costs up to the completion of a residential building near the new place of work
- Expenses for the renovation and furnishing of the new apartment
The employer can reimburse the costs of moving as a result of a professional move up to the amount of the income tax deduction. The deduction for income-related expenses is reduced accordingly.
Tax return, relocation costs: Further options to deduct the relocation against tax
Deduction as special expenses / extraordinary charges: If you have moved in connection with your first professional training, the moving costs are part of the special expenses (costs of your own professional training).
If you were forced to move for health reasons (proof by medical certificate) or due to floods or other natural disasters (fire, etc.), the moving costs can be deducted as extraordinary burdens, provided they exceed the reasonable burden. In this case, it is not difficult to claim relocation costs on your tax return.
Moving costs caused by the termination of an apartment, regardless of whether by the tenant or landlord, are not exceptional burdens.
Household services: Insofar as no deduction is possible as income-related expenses or in the case of the extraordinary burdens in the tax return, privately arranged removals - minus reimbursements from third parties - are among the household-related services for which there is a tax reduction.
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