Ask Experts Questions for FREE Help !
Ask
    pavitra's Avatar
    pavitra Posts: 10, Reputation: 1
    New Member
    		  
    #1

    Mar 19, 2008, 03:42 PM
    Moving expenses - Outside US
    Query is in blue color below. The rest explains the scenario.

    April 02, 2006 - Moved from India to Baton Rouge, Louisiana -US ( L1 visa ) with the assignment expected to last for less than 1 year. Before leaving India, stored my belongings in a storage. I claimed unreimbursed employee expenses ( Travel & meal ) in year 2006 return.

    March 20, 2007 - Assignment expected length changed to 18 months i.e. till Sept 2007. I understand that from March 20, 2007, my tax home will be Baton Rouge, Louisiana & I can no longer claim unreimbursed employee expenses ( Travel & meal ). I also understand that I can claim unreimbursed employee expenses ( Travel & meal ) till March 19, 2007. Please confirm. If yes, can I use the standard per diem rate for claiming unreimbursed employee expenses. What is that rate for Baton Rouge, Louisiana?

    Oct 03, 2007 :- Transferred back to India, permanently. Inlieu of claiming expenses of moving households goods from US to India , can I claim my expenditure of storing belongings in India from Jan 2007 to Oct 03, 2007. Storage expenses in India are less than moving all belongings from US to India. Please reply.
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
    		  
    #2

    Mar 20, 2008, 01:55 AM
    You moved in 2006. You can't deduct any expenses in 2007. You can't deduct moving expenses back to India.

    Read: Your U.S. Tax Return: Moving Expenses
    pavitra's Avatar
    pavitra Posts: 10, Reputation: 1
    New Member
    		  
    #3

    Mar 20, 2008, 03:31 AM
    There is a catch over here. From March 20, 2007, my tax home is Baton Rouge, Louisiana. Now when I am moving to India in Oct 2007 on a permanent basis, my tax home changes from US to India. Per this understanding, I should be able to claim moving expenses from US to India. Please advise.
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
    		  
    #4

    Mar 20, 2008, 07:09 AM
    Moving expenses means moving to start a new job.
    Also if the new workplace is outside the U.S. you must be U.S. citizen or resident alien to deduct your expenses.
    pavitra's Avatar
    pavitra Posts: 10, Reputation: 1
    New Member
    		  
    #5

    Mar 21, 2008, 04:31 AM
    I believe that I am a resident alien as I meet substantial presence test. Moreover, I have been transferred from US to India.

    What is the definition of new job? Is it new employer? I am not able to find any documentation on IRS site which says that moving expenses outside US can be claimed only in case of new employer.

    Please advise.
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
    		  
    #6

    Mar 21, 2008, 11:11 AM
    You should read IRS Publication 521: Moving Expenses
    Internal Revenue Service
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Moving expenses [ 1 Answers ]

Sir, I moved recently from outside USA by plane to start a new job. I also had some house good stored at one of my friends in a different state (for which I rented a car to bring back). I know I meet the time, place and other tests for applying for moving expenses. My question is can I claim the...

Moving Expenses [ 3 Answers ]

My husband's new company paid for us to move but we still had to stay at a hotel and drive to the new location in two vehicles. Can we get reimbursed on the hotel stay, meals and mileage for the two vehicles? Thanks

Moving Expenses [ 1 Answers ]

I came to US on L1 (Intra Company Transfer) on 2nd April 2006. I am in US since then. My company paid partial expenses for moving from India to US. Can I claim the rest of the amount as moving expenses ?

Moving expenses [ 1 Answers ]

Hi, I was a resident of the US for the entire year 2006 and moved out of the US on 16th Jan 2007. Can I claim moving expenses for the jan 07 move in the 2006 tax return? Thanks!

Moving Expenses question [ 3 Answers ]

So, I am trying to e-file at Taxact.com I worked from jan 2006 in NJ, and got promoted and moved to philly on dec 1st 2006. My employer paid for my moving expenses upfront, but I think I spent about $300 more than he gave me. When I enter this difference in my e-file, my refund increases...

View more questions Search