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Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 28084
Experience:  Taxes, Immigration, Labor Relations
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I took a new job to help stand up a realtor firm in Hawaii.

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I took a new job to help stand up a realtor firm in Hawaii. I relocated my family from Utah to Hawaii. I was to be the Director of Marketing until I completed my real estate license. After 3 months of no income as a sub contractor I decided that the move was a bad choice and moved my family back to Utah and was unemployed for another 60 days. Will I be able to deduct moving expenses for moving?

LEV :

Hi and welcome to Just Answer!


If you moved due to a change in your job or business location, or because you started a new job or business, you may be able to deduct your reasonable moving expenses but not any expenses for meals. To qualify for the moving expense deduction, you must satisfy two tests. Under the first test, the "distance test," your new workplace must be at least 50 miles farther from your old home than your old job location was from your old home. If you had no previous workplace, your new job location must be at least 50 miles from your old home.


The second test is the "time test." If you are an employee, you must work full-time for at least 39 weeks during the first 12 months immediately following your arrival in the general area of your new job location. If you are self-employed, you must work full time for at least 39 weeks during the first 12 months and for a total of at least 78 weeks during the first 24 months immediately following your arrival in the general area of your new work location. There are exceptions to the time test in case of death, disability and involuntary separation, among other things.
Thus - based on your information - because the "time test" is not met - you may not deduct moving expenses from Utah to Hawaii.
However - you MIGHT be eligible to deduct moving expenses from Hawaii to Utah - if you would work full-time for at least 39 weeks during the first 12 months immediately following your arrival to Utah.

Customer:

So if I had to leave my job in Hawaii do to involuntary separation would I be able to deduct all of the moving qualified moving expenses.

Customer:

*all of the qualified moving expenses*

LEV :

Yes - as long as two tests mentioned above are met - you may deduct moving expenses.
It doesn't matter what was the reason of your separation.

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