You’ve successfully helped your clients navigate the tricky process of buying and selling a house! As every good realtor knows, your job doesn’t stop there. You are committed to helping your clients transition into their new home as seamlessly as possible, having their backs from start to finish.
While you’ve undoubtedly already aided them in overcoming various obstacles, there’s still one that’s likely looming – the financials. Between the costs of closing and purchasing a home to the expenses incurred from relocating, moving can carry a hefty price tag.
There are, however, some ways to make moving more budget-friendly. If your clients are moving for their careers, they just might qualify for tax deductions to mitigate some of their moving expenses. Whether or not this is applicable to a client is based on two requirement tests:
· The Distance Test – The first requirement states that the distance between your client’s old home and his or her new place of work must be a minimum of 50 miles farther than the distance between your client’s old home and previous workplace. As an example, if your client would commute 10 miles from the previous home to his or her old work place, then the new job must be located at least 60 miles away from the previous home.
· The Time Test – The second qualifier is based on time worked and is divided into two categories. For an employee of a company, he or she must work full-time for a minimum of 39 weeks. Those who are self-employed are required to work full-time for 39 weeks the first year as well as a total of 78 weeks within the first two years of moving. The time test is applicable in all ordinary circumstances and exceptions only apply in cases of disability, involuntary separation, death, and other special incidences.
Discuss the circumstances of the relocation with your clients so you can determine if they might qualify to deduct their moving expenses. These deductions include all reasonable expenses incurred to relocate and paid for personally by your client, such as:
· The cost of a moving company
· Any truck or equipment rental
· Gas and lodging expenses, not including food
Always looking for more ways to help your clients save? Join Booth Moving’s Premier Partner Program! Our referral network allows you to offer your clients special pricing while receiving VIP referral treatment. Give us a call and speak with one of our helpful agents to learn more about this exclusive program.
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