Can I Deduct Rental Car Costs as a Moving Expense?

Filed under: Car Rental Indianapolis - 16 Feb 2010  | Spread the word !

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Recently, many people have been told by their employers that their services are no longer needed. This has been, in large part, due to the current economic crisis that has been gripping America. While the economy is beginning to turn around and start looking like it will stabilize soon, there are still millions of Americans without a job or working a job that doesn’t support their families. This has led many people to seek employment in different cities around the United States which leads to relocation for those that find work.

One of the problems with finding work in a different country, state, or even a different city is that you then need to fund a move for your entire family. This is no easy task and employers understand that and many offer relocation services that they pay for. However, for some, they will need to relocate mainly with their own money and sometimes will receive no help from their employer. Most of these expenses people understand they can deduct from their taxes as a necessity, but not many realize that even when they are looking for a new home and need to rent a car to find their property they can begin keeping receipts to add to their deductions.

The IRS has stated that they will allow anyone who relocates to claim all of their expenses, except food, as a deduction on a 3903 tax form. This means that from the very start of your relocation expenses you can start saving receipts for everything that costs you money from flights to conference calls and even rental cars so that it can be offset at the end of the year so long as your employer does not reimburse your expenses.

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