Friday, April 23, 2010

Cost-Saving Moving Tips

Now is a great time to buy a new home! However, to qualify for the $8000 tax credit, you must know that time is of the essence. To qualify for the tax credit, you need to be in a signed contract by April 30th and you’ll have until June 30th, 2010 for the sale to close. One of the extra expenses of a new home is the cost of moving. A recent Kiplinger’s article provides some great tips on how to save on your move into your new home. Take a look at a couple of money-saving tips below and don’t forget to go to my Tax Help Blog to check-out whether you qualify to deduct some of your moving expenses on next year’s tax return.

1. Don’t Pay Full Freight. Are you going cross-country? A move for a 3-bedroom home could cost as much as $8,000! Try to move in the off-season, between October and April and you can save 10%. Get several written estimates with rates per hour (for a local move) or per pound (for an interstate move). Bids should cover every room in your house and should be done in person.

2. Kick the tires. If you're moving across town, ask around for recommendations and then go to the Better Business Bureau's Web site to make sure there haven't been any complaints filed against your prospects. If you're moving across state lines, your first pit stop is the web site of the American Moving & Storage Association, a trade group. From the home page, click on "Find a ProMover Now," and as many as six movers will call to set up an in-home estimate. If you have a firm you want to use for an interstate move, you can make sure it's licensed with the Federal Motor Carrier Safety Administration and view the company's complaint and safety record by clicking "Search Movers & Complaint History."

3. Let Uncle Sam help pay for it. If your move is job-related, you may be able to deduct some of your moving expenses whether or not you itemize your deductions. You must move within a year of your first day at the new job. In addition, your new office has to be at least 50 miles farther from your old house and office. If you qualify, you can deduct the cost of moving your household goods and traveling, but not meals. Some moving-related expenses that can be deducted for a job-related move include:

  • Packing and transportation costs for moving household goods
  • The cost of shipping goods from a place other than your former home (such as a storage unit)
  • Any storage bills, or fees for disconnecting or reconnecting utilities
  • All move-related travel expenses (such as mileage, tolls, lodging, parking fees, etc.)
  • Expenses of shipping or relocating your car and pets to your new home

Continue reading Kiplinger’s full article here.

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