Are moving expenses deductible?

Whether moving expenses are tax deductible varies by situation. This is because different rules apply to private individuals than business moves. In general, private removals are not tax deductible and business removals are. However, there are exceptions to take into account.

Are moving expenses deductible for individuals?

For individuals, the cost of moving is normally not deductible. These costs are considered a private expense. However, there is a trick that does allow you to deduct a the cost when you take out a loan. Also, of course, there are other costs that may come up when you move to another house that are tax deductible.

What is tax deductible for individuals when purchasing a home?

So unfortunately, moving expenses are generally not deductible, but there are a lot of costs involved in buying a home that you can deduct. These include:

• Advisory and brokerage fees
• Mortgage Interest
• Appraisal fees
• Cost application for National Mortgage Guarantee (NHG).
• Notary fees for the mortgage

What is not tax deductible for individuals when buying a home?

Not all costs you incur when purchasing a home are deductible. Some of these costs, unfortunately, are entirely for your own account. Some examples:

• Transfer tax
• Brokerage fees
• Renovation costs
• The cost purchaser (k.k.)

Deduct moving expenses when paid with a loan

In principle, you can deduct moving expenses if you paid for them with a loan. A loan can be deducted from your assets during your tax return, which can give you a tax advantage. Note, however, that there is a limit to how much you can deduct.

Taking out a loan for things like moving we ourselves would not quickly recommend. But whether it is wise and worthwhile is, of course, up to you.

Moving allowance

When you move for work, you may sometimes receive moving allowance from your employer. You can use this to cover (part of) the cost of the move. However, this is not mandatory for employers to offer. So consult your employer whether this applies to your situation.

Are moving expenses business deductible?

For businesses, different rules often apply. For business moves, expenses incurred are usually business deductible. The following rules apply:

• The cost of moving business household contents is fully deductible. This includes, for example, rental of a moving truck or the cost of a professional moving service.
• A fixed amount of €7,750 may be deducted
• Dual housing expenses are deductible for up to 2 years

Always make sure that the move must really take place because of the business, the tax authorities may possibly ask for proof. Source: tax authorities.

When is a move business

To determine whether a move is really business and whether you can deduct expenses from your taxes, the IRS has established rules of thumb:

• Relocation occurs within 2 years of relocation of the business
• The commuting distance before moving was at least 25 km and this distance decreases by at least 60% due to moving.

If you do not directly meet these rules of thumb, it does not necessarily mean that the move is not business deductible. However, you must then be able to prove that the move serves a business purpose. Source: Tax Office.

Exactly what expenses are deductible in a business move?

• Cost of a moving company
• Furnishing the property and necessary renovations
• Any temporary storage costs
• Double rent or mortgage costs

What expenses are not deductible in a business move?

• Moving expenses of private property
• Costs for luxury renovations of the property
• Cost of commuting after the move

Saving tips when moving

If you are an individual, it may not be readily possible to deduct the cost on a business basis, but there are other ways to save a little on moving expenses:

• Sell or donate items you no longer need. This way you will make a profit and you won’t have to move it again.
• Ask family or friends to help
• Check if your employer offers a moving allowance (if relevant)
• If you use a removal service, pack and sort your belongings beforehand.

Many people like the idea of hiring a moving company. For this, you can turn to us. We provide a flawless move for a competitive price. Are you interested in our moving service? Then call directly, or request a free quote.

Frequently Asked Questions