Deduct the relocation for tax purposes

Deduct your move for tax purposes! How it works:

If you change your place of residence to plan, there are many things to think about. Therefore it is helpful in terms of planning and organization to start early enough. There can be many reasons for such a change of residence. Did you know that some of your move can even be tax deductible? In any case, it is worth researching all the information and details worth knowing in advance so that you can find out everything about it. For example, you can find out which costs you can deduct from your taxes for the move and how it is with the deadlines looks to. Incidentally, there are also differences as to whether the move is work-related or private. In the following guide you can read through the best tricks and tips.

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Differences between private and professional

In principle, it is not automatically possible in all cases for you to deduct the costs of the move from tax copy and can drop off. It is therefore important to accept the respective terms and conditions fulfill. If you change your place of residence for professional reasons, for example, for a new job, you can deduct the expenses for the move as so-called moving costs and income-related expenses. This also has something to do with the 2021 flat rate for moving costs. Basically, it is more or less about expenses and expenses of an employee, which occur for a professional reason. That is why you can deduct these moving expenses from your taxes.

Deduct the move for tax purposes privately

The situation is a bit different for one private move because in this case we are not talking about moving expenses or income-related expenses, but about household-related services. You can also write these off as such. Also define whether you are moving because this is necessary for special reasons. In that case, it is specifically a so-called exceptional burden. This kind relocation you can also make a private note as a move as a tax deduction. A household-related services relocation is just as possible, so that you can deduct your relocation costs. Therefore you will find out about it be happythat you are able to deduct your move for tax purposes, both for professional and private reasons. Therefore, you may highlight the reason for the move in your upcoming tax return. Don't forget that you have supporting documents and evidence to needwhich may need to be submitted. It is all the more important for you to keep the following:

  • bills

  • Offers

  • Documents

It gets a bit more difficult if you don't have them to hand. Nevertheless, in this case you can still help yourself with the 2021 relocation fee. This flat rate is deducted directly from the tax instead of the individual services. Inquire about the current year because this flat-rate moving fee is annual elevated becomes. Also, the sales amount varies from country to country. Your financial advisor or accountant can provide you with all the necessary details.

What types of moving expenses can I deduct?

In principle, you can only deduct part of the moving costs from the necessary tax. That's why it's interesting if you find out, which costs you declare in the annual tax return. You are welcome to view the summary as follows:

  • Renovation costs

  • Furniture assembly or disassembly costs

  • Costs incurred by moving companies and a moving service develop

  • Cost of rent, if double rent payment may be necessary

  • Accommodation costs incurred by looking for an apartment, but the maximum number of days is limited

  • brokerage costs

  • Travel and transportation costs

If you have a detailed list of these costs to hand, you can claim these moving costs for tax purposes in your tax return. You will be surprised how much money is raised for this. If in doubt, it is always worth asking your tax advisor so that you state the correct amounts.

Moving for professional reasons and deducting moving expenses

Your situation is a bit different if you are moving for professional reasons and can write off and claim the relocation costs accordingly. This approach is Not complicated. Normally you have to meet the following conditions:

  • You have to move because of your past or future duties

  • You can provide proof of all receipts, documents and invoices

  • Your work requires a move to another city, or inland or a international relocation is necessary

  • Your commute to work will be shortened significantly due to the move

  • After a stay abroad, you return to Germany to a new job

As for the documents and receipts that you need to be able to deduct the moving expenses for tax purposes, you should show the following:

  • documents to double Rent due to moving

  • Costs for brokers or viewings, or accommodation costs - these should be limited to just a few days

  • Costs for a moving company or costs for transport

In principle, you should always make sure that you keep and file all invoices cash payments avoid if possible. If you need to prove a transaction, a bank statement will help you. You can obtain information on this in advance from the tax office. In any case, it is always worthwhile to consult a good tax advisor beforehand.

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