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| Moving to Brazil | |
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wendysmiles
Senior Member
Joined: 17 January 2011 Location: Brazil Online Status: Offline Posts: 265 |
![]() Topic: Write off your move on your US tax returnPosted: 23 February 2012 at 15:13 |
My US accountant is soo good to me - he gives me a $450 bill, and leaves this off! So, if you move more than 50 miles (ok, moving here counts), and within 1 year you start working in your line of work, and you remain in your job in Brazil for 10 months (39 weeks), you qualify to write off your move - straight off the top! That includes all moving costs, storage fees while away, trips to storage - everything. You can go back and do an amended return if need be. But man - if I knew this, I would have sent the container! So, I thought I should share for others that might not know it...I am an accountant, but, I dont do taxes... instead, I pay $450 to a guy who cant get this thing right? I havent paid/finished the 2011 yet, so I can still get him to put this in there.http://www.irs.gov/publications/p521/ar02.html#en_US_2010_publink1000203444Moves to Locations Outside the United StatesTo deduct expenses for a move outside the United States, you must move to the area of a new place of work outside the United States and its possessions. You must meet the requirements under Who Can Deduct Moving Expenses, earlier. Deductible expenses. If your move is to a location outside the United States and its possessions, you can deduct the following expenses.
Moving goods and effects to and from storage. You can deduct the reasonable expenses of moving your personal effects to and from storage.
Storage expenses. You can deduct the reasonable expenses of storing your household goods and personal effects for all or part of the time the new job location remains your main job location.
Moving expenses allocable to excluded foreign income. If you live and work outside the United States, you may be able to exclude from income part or all of the income you earn in the foreign country. You may also be able to claim a foreign housing exclusion or deduction. If you claim the foreign earned income or foreign housing exclusion, you cannot deduct the part of your moving expenses that relates to the excluded income.
Publication 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad, explains how to figure the part of your moving expenses that relates to excluded income. You can get the publication from most U.S. embassies and consulates, or see How To Get Tax Help at the end of this publication.
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wendysmiles
Senior Member
Joined: 17 January 2011 Location: Brazil Online Status: Offline Posts: 265 |
![]() Posted: 23 February 2012 at 15:14 |
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Oh, and on the flip side - you can write off the move when you go back too. So, save your receipts!
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Meredith81
Senior Member
Joined: 12 April 2006 Location: Brazil Online Status: Offline Posts: 292 |
![]() Posted: 23 February 2012 at 17:09 |
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I copied this and e-mailed it to my accountant. Let's see what he thinks (hopefully he hasn't already done our taxes for us yet).
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DUNGA
Gringoes.com Guru
Joined: 30 March 2006 Location: Brazil Online Status: Offline Posts: 5110 |
![]() Posted: 23 February 2012 at 23:09 |
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Sounds right to me. Some people may make more on the write-offs than at their Brazilian jobs.
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wendysmiles
Senior Member
Joined: 17 January 2011 Location: Brazil Online Status: Offline Posts: 265 |
![]() Posted: 24 February 2012 at 07:06 |
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My accountant still hasnt gotten back to me - many times he just doesnt know his stuff...only reason i used him was to finish up cuz of the rental properties. I will be so glad when i am done with him!
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Meredith81
Senior Member
Joined: 12 April 2006 Location: Brazil Online Status: Offline Posts: 292 |
![]() Posted: 24 February 2012 at 11:48 |
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Turns out this may not work for me. My employer paid for our move....
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tamte
Senior Member
Joined: 20 March 2011 Location: Brazil Online Status: Offline Posts: 342 |
![]() Posted: 24 February 2012 at 12:07 |
Haaha, the same thing with me
I already jumped up and started screaming "I get $10k return", then I remembered I did not pay for the move
So no free money here
Edited by tamte - 24 February 2012 at 12:08 |
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wendysmiles
Senior Member
Joined: 17 January 2011 Location: Brazil Online Status: Offline Posts: 265 |
![]() Posted: 24 February 2012 at 21:01 |
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Well, it is for those of us that just moved...like me. if i had an employer paying, i would have sent more. For me, will just give me more of a carryover loss...lol
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