Transporting your vehicle may be quite expensive, especially if you have to transport it a great distance in the United States, internationally, or at the last minute. Considering all of the other moving expenses that you also will have to incur, this can all add up to a large amount of money. However, if you're moving due to a work-related reason, even if it involves starting your own small business, you may be able to write off the auto transport costs as a tax deduction, along with some of your other moving costs. Check it out:
You Must Meet the "Distance and Time" Test
In order to be eligible to write off your auto transport expenses as a tax write off, you have to meet the "distance and time" test. It's quite simple to understand.
First, starting with the distance part, your new place of work has to be a minimum of 50 miles away from your old home compared to where your old place of work was.
Second, the time aspect can be satisfied if:
- You will be working full time in the area where your new workplace is located for a minimum of 39 weeks during the first year that you make your move.
- If you are not working for another company but instead are going to be self-employed, the 39 week time requirement will still apply to you, but the difference is that you have to work at least 78 weeks in that same location during the first two years after your move.
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What Form Should You Fill Out?
The main form that you have to fill out is IRS Form 3903, which is entitled as "Moving Expenses." You will be able to include not only the transportation of your vehicle but also the transportation of any of your household items and personal items as well.
You can find the form at the IRS's official website located here at http://www.irs.gov/uac/Form-3903,-Moving-Expenses. They will have additional information on what to include in the forms, and they should be quite easy to fill out. Just make sure to keep the appropriate documentation of all of your auto transport expenses.
What if I or a Friend Drives the Vehicle?
If you elect to drive the vehicle yourself or have a friend or family member do it for you instead of hiring an auto transport company, you can still be eligible for a tax write off. You will have to make sure that you keep detailed records of your fuel costs, and you might be able to include some general maintenance and wear and tear costs as well in it, such as oil changes or tire changes that you may have to do.
Of course, the surest way to make sure that you're eligible for a tax write off is to talk to your accountant. It's a much easier process than it seems! Make sure to contact A-1 Auto Transport for all of your auto transport needs!