Homeowners who relocate to another city to take a job are eligible to deduct moving expenses. Once you relocate, however, the IRS expects you to stay put for a while.
The tax law requires you to remain in the new locality as a full-time employee for at least 39 weeks during the first 12 months following your arrival. The self-employed face the added requirement of at least 78 weeks’ work during the first 24 months. If you don’t stay that long, you may have to pay the IRS back for any moving deductions claimed.
One exception is if you’re laid off from your job for reasons other than “willful misconduct.”
Another exception is if your employer needs to transfer you to a different city.
– Recent declines in interest rates have prompted many homeowners who refinanced in recent years to consider refinancing again to lock in an even lower mortgage rate. If you’re planning to refinance again, there is a tax advantage to getting it done by Dec. 31.
If you do, you may be able to claim hundreds or thousands of dollars in extra deductions on your 2001 income tax return. These extra deductions relate to “points” paid to your lender in connection with your previous refinancing.
Points paid in a refinancing usually must be deducted gradually over the life of the loan. But, when you refinance a second time, any points paid on your previous refinancing that haven’t yet been written off can be immediately deducted in a lump sum.
