If you’re among the many workers who will be making a job-related move this summer, try to negotiate with your employer for reimbursement of as much of your relocation expenses as possible because the tax code will provide only minimal help.
The moving deduction covers only basic expenses: shipping household goods, transportation to your new location and lodging en route. That leaves a long list of expenses that aren’t deductible, including house-hunting trips and costs related to the sale of your old home and the purchase of a new one. Besides reimbursement, ask your employer to cover the tax consequences. Any reimbursements you receive for expenses that aren’t eligible for the moving deduction are subject to tax.
– If the approach of summer has you thinking about how you might be able to afford a weekend or vacation home, the tax code can provide some help with the monthly payments. Mortgage interest and property taxes are deductible on a second home, just as they are on your main home. Mortgage interest can be deducted on up to a total of $1 million in debt used to buy or improve a first and second home.
