{"id":2622,"date":"2019-04-15T11:25:30","date_gmt":"2019-04-15T18:25:30","guid":{"rendered":"http:\/\/dolly.com\/blog\/?p=2622"},"modified":"2026-04-28T07:54:23","modified_gmt":"2026-04-28T14:54:23","slug":"moving-home-tax-deduction-tips","status":"publish","type":"post","link":"https:\/\/www.taskrabbit.com\/blog\/moving-home-tax-deduction-tips\/","title":{"rendered":"2019 Edition: Are Moving Expenses Tax Deductible? Moving & Home Tax Advice"},"content":{"rendered":"

Spring is the perfect time to reflect on the past year and look forward to the new\u2026and it\u2019s also a great time to start thinking about how a recent move or past home improvements could save you money in 2019. Tax season is officially in full swing, and if you want to turn deductions into dollars-saved, you\u2019ll want to check out these five tips for taking home investment tax deductions.<\/span><\/p>\n

Whether you\u2019ve recently moved, renovated, sold or bought a house, or are just renting, here\u2019s what you need to know about deducting expenses and investments from your 2018 taxes.<\/span><\/p>\n

If You\u2019ve Moved Recently: Can I<\/b> Deduct Moving Expenses?<\/b><\/h2>\n

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Moving can be a pain, and costs associated with it can be, too. In the past, you’ve been able to recoup some of that cost through taxes, but starting with 2018 taxes, that’s not an option. <\/span><\/p>\n

“Previously, you could deduct costs of moving for work if it met certain requirements,” explains DollarSprout’s Virtual CFO Ben Watson<\/a>. “You’re no longer allowed to deduct costs for moving except for certain circumstances in the military.”<\/p>\n

That means moving for work is now a more expensive task–even more reason to negotiate your relocation expenses<\/a> when accepting a job.<\/p>\n

However, those relocation expenses now can’t be deducted, CPA Logan Allec<\/a> explains. “Under the old tax law, taxpayers who were reimbursed by their employers for moving expenses did not have to include the amount of the reimbursement in their income (and these amounts were deductible for the employers making the reimbursement). Now, these amounts must be included in income (and these amounts are no longer deductible for the employers making the reimbursement).”<\/p>\n

If You Work From Home: How Do I Deduct Home Business Expenses?<\/b><\/h2>\n

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Prior to the Tax Cuts & Jobs Act, employees who worked from home could deduct business expenses from a home office (like a portion of utilities, insurance, and business equipment) in their taxes. Starting with your 2018 taxes, that’s changed.<\/p>\n

“If you are a remote employee that works from home, and receive a W-2 (not a 1099), you are\u00a0not<\/em> allowed to deduct expenses from your home or unreimbursed expenses paid out of pocket for your job,” according to Watson. The key here is the unreimbursed expenses. It’s more important now than ever to get those expenses reimbursed so they can be deducted.<\/p>\n

This also means the rules now differ between employees and the self-employed: self-employed workers, like freelancers, are allowed certain deductions that work-from-home employees aren’t. CPA Riley Adams<\/a> explains, “Now, only self-employed workers may claim the home office tax deduction. They may choose the standard method of the simplified method. The former allows for the full tally of expenses to be claimed in their actual amount, whereas the later takes a square footage amount dedicated to your home office and multiplies it by $5 per square foot.”<\/p>\n

If You Renovated Your Recently Sold Home: <\/b>Are Home Improvement Expenses Tax Deductible<\/b>?<\/b><\/h2>\n

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Remember when your significant other questioned your decision to expand the upstairs with that master suite addition a few years ago? It\u2019s time to bask in glory and find a way to politely say \u201cI told you so!\u201d Not only did you get to enjoy all that luxurious space plus an en-suite bathroom, but now that you\u2019ve sold your home, the investment you made could also pay off in a big deduction.<\/span><\/p>\n

Of course, not all the work on your home is considered a home improvement by the federal government. Basic maintenance and repairs that merely return your home to its original condition and functionality don\u2019t qualify for this deduction. Capital improvements\u2014or home improvements that you can deduct from your taxes\u2014must increase your home\u2019s value and usefulness. If you\u2019ve finished a basement, added a bathroom, remodeled a kitchen, installed new plumbing or a new fireplace, replaced your roof (it was high time, wasn\u2019t it?) or built a swimming pool, these improvements can be deducted, though only after you sell your home.<\/span><\/p>\n

If you\u2019re not sure if your new windows and landscaping count (they might), or if you can deduct the palatial dog house you built for your pup (Magic 8-Ball says \u201cNot likely\u201d), you can first review<\/span> IRS Publication 523<\/span><\/a>, which lists eligible examples, or read about<\/span> what home improvements are tax deductible<\/span><\/a>. If you\u2019re still in doubt you can also consult a tax accountant.<\/span><\/p>\n

If You Purchased a Secondary Home: Are There Deductions for Vacation Homes?\u00a0<\/b><\/h2>\n

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With moving behind you, you can think about the deductions you may be able to take for mortgage interest, mortgage insurance premiums, and real estate taxes. These deductions are itemized on<\/span> Form 1040, Schedule A, Itemized Deductions (PDF)<\/span><\/a>, and if you have questions (who wouldn\u2019t?),<\/span> IRS Publication 17, Chapter 23<\/span><\/a> is there for you…just some light reading to help you fall asleep at night.<\/span><\/p>\n

Did you take the big plunge and purchase a second home or a vacation home recently? It may deliver more <\/span>mortgage interest and property tax<\/span> deductions for you. <\/span>If you rented your second property for 14 days or less per year, you can deduct those taxes. If you rented for longer than the 14-day annual limit, the IRS counts this home as an income property, and you won\u2019t be able to take these deductions. (But on the plus side, you probably have an awesome Airbnb!)<\/span><\/p>\n

If You\u2019re a Renter or a Landlord: What Income Tax Deductions Are Available for Renters?<\/b><\/h2>\n

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Whether you\u2019re a landlord or a renter, you may have some options for taking tax deductions in 2018. Homeowners with a rental property can deduct utilities, taxes, and property repairs, not to mention services like a property manager\u2019s salary or house cleaners\u2019 wages. Be sure to file <\/span>Form 1099-MISC <\/span>if you paid <\/span>a contractor $600 or more over the year (and <\/span>include their tax ID number)<\/span>, though you can deduct this expense regardless of the amount. See what other<\/span> deductions landlords can take<\/span><\/a>.<\/span><\/p>\n

If you\u2019re renting, there are a few<\/span> federal tax deductions renters can take<\/span><\/a>:<\/span><\/p>\n