A husband and wife moved overseas in order to begin work with an orphanage. Can they take the moving expenses deduction?
According to IRS Publication 521, "To 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. [First,] you must meet the [general] requirements under Who Can Deduct Moving Expenses."
"Who Can Deduct Moving Expenses" Requirements
- First is the distance test. The publication states, “Your move will meet the distance test if your new main job location is at least 50 miles farther from your former home than your old main job location was from your former home” (see Publication 521 for specific examples).
- Second is the time test. The general rule is that one must work at the new job location for 39 weeks of the first 12 months (see publication for specific rules for employees vs. self-employed individuals).
- Third is the relation to work test. The rule is that "your move must be closely related, both in time and in place, to the start of work at your new job location" (IRS Publication 521).