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Yet another tax question...

Yet another tax question...

Old Sep 6th 2009, 12:45 pm
  #1  
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Default Yet another tax question...

It's been pretty well established, in threads passim, that you can deduct certain relocation expenses from your income for your US tax return. We had been thinking "lovely, that'll be a nice little deduction this year."

Sadly, while SWMBO has found work (thereby enabling us to deduct, as we file jointly) I've yet to get a job. This means that (unless I suddenly earn a fortune in the last few months of the year) we're unlikely to be able to take full advantage and will end up "wasting" a big chunk of our deduction.

Does anybody know if you can carry such deductions forward a year?
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Old Sep 6th 2009, 1:37 pm
  #2  
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Default Re: Yet another tax question...

Oops, I think I may have found the answer.

Apparently, you can carry it forward (or even back). This page: http://www.irs.gov/publications/p536/ar02.html says (after listing moving expenses as one of they types of loss that can be carried over):

Deducting a Carryforward

If you carry forward your NOL to a tax year after the NOL year, list your NOL deduction as a negative figure on the Other income line of Form 1040 or Form 1040NR (line 21 for 2008). Estates and trusts include an NOL deduction on Form 1041 with other deductions not subject to the 2% limit (line 15a for 2008).

You must attach a statement that shows all the important facts about the NOL. Your statement should include a computation showing how you figured the NOL deduction. If you deduct more than one NOL in the same year, your statement must cover each of them.
Which raises another question. ISTR that several of us didn't get to deduct moving expenses in the year of moving here, for one reason or another. Might they be able to carry them forward to next year? Or file an amended 1040 for that year?
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Old Sep 8th 2009, 4:46 pm
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Default Re: Yet another tax question...

You can't just carry the moving expense deduction back and forward- you have to figure whether you have a NOL first, and then that is what gets carried back or forward.

The moving expense deduction is an allowable deduction for calculating the NOL, but other items like personal exemptions aren't.

You found the right IRS pub. so you should be able to figure your NOL for the year.
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Old Sep 8th 2009, 4:57 pm
  #4  
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Default Re: Yet another tax question...

Originally Posted by Peter Newton View Post
You can't just carry the moving expense deduction back and forward- you have to figure whether you have a NOL first, and then that is what gets carried back or forward.

The moving expense deduction is an allowable deduction for calculating the NOL, but other items like personal exemptions aren't.

You found the right IRS pub. so you should be able to figure your NOL for the year.
Yes, you're quite right. In our case, once you deduct the allowances and exemptions, the NOL that's left is basically bugger all.
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