Using Temporary Storage As A Tax Deduction To Ease The Burden Of A Residential Move
Because of the enormity of the process, moving to a new residence sometimes cannot be accomplished in just a single day. For logistical reasons, it may take weeks to complete a move. Individuals who meet certain requirements can claim a tax deduction for the cost of temporarily storing their personal belongings in a self-storage facility.
Requirements for deductibility
The cost of storage is one of several moving expense categories that may be tax-deductible. In order to qualify as a tax deduction, the move must be related to a new place of employment. The distance from your old residence to the new job location must be at least 50 miles greater than the distance from your old residence to your old job. If you are moving to start your first job, the employer must be at least 50 miles from your old residence.
There is also a general requirement for you to work at the new location on a full-time basis for at least 39 weeks during the 12 months following the move. However, this requirement does not apply if you are transferred by your company. If you are self-employed, you generally must work at least 78 weeks during the 24 months following the move.
If the move is deductible, you can deduct the cost of up to 30 consecutive days of storage. If you need to vacate your old residence before the new residence is fully ready for occupancy, some or all of your belongings can be placed in temporary storage. The cost of storing personal items is normally not deductible, but items in temporary storage during a move are considered to be in transit.
Moving usually requires the use of boxes of various sizes. The tax deduction for moving expenses also includes the cost of boxes and packing tape. Before actually transporting your items to a storage unit, you might want to plan how to most efficiently arrange your belongings. During the time of temporary storage, you might need to access certain items.
You may need professional assistance to physically move all your items. If so, the costs of transporting your belongings to and from storage are deductible along with the remainder of the transporting expenses. The cost of insuring stored items for up to 30 days is also deductible.
The tax deduction for moving expenses is actually an adjustment, rather than an itemized deduction. That means you don't have to itemize deductions to claim it. The adjustment for moving expenses is claimed on Form 3903, which reduces taxable income. Contact a self-storage facility for more information about protecting your assets during a residential move. Check with storage companies like Gorst Self Storage to find the unit that fits your needs.