Can I deduct moving expenses?

February 1, 2007 9:23 AM

It's tax time, and it shows. My question is about moving expenses: Can I deduct them for a move from CA to NY, even though I kept the same job and am now telecommuting?

Earlier this year, my employer was running out of office space, so they extended an offer to allow some employees to move long-distance and telecommute, if they wished. I took them up on it.

It looks like I technically meet the IRS's requirements for deducting moving expenses: The new location (my home office) is over 2000 miles away from my old home and office, and I work full time out of my home, so I'll meet the 39 week requirement.

But the move was only marginally job-related: we mostly chose to move to be closer to home. The offer from my employer just made it a lot easier.

posted by phrenq to Work & Money (3 answers total)

IANA accountant or tax attorney, but I'm pretty sure that no, you can't. According to the IRS's Publication 521:

Your move must be closely related, both in time and in place, to the start of work at your new job location.

This is clearly not aimed at telecommuters. You could have moved anywhere in the world, or even not moved at all, and had the exact same distance between your residence and your office.
posted by cerebus19 at 9:43 AM on February 1, 2007

Maybe, if you bought a new computer recently, you could deduct that cost? Just a thought.....
posted by peewinkle at 10:35 AM on February 1, 2007

I am in Canada, so this may not apply. But I understand that there was recently a precedent where someone argued that they had moved to telecommute because they could not afford housing that would accommodate a home office. They made a case for needing to move to set up a home office so they could telecommute. So they technically moved for work. However, I do not know what the case would be in the US. Just something to ponder.
posted by acoutu at 12:42 PM on February 1, 2007