21
votes
Accepted
Is house swapping possible?
Possible but difficult
You would have to find someone in the other state who wanted to swap. This is conceivable but difficult if you want the houses to be the same value. How do you find the one ...
- 21k
11
votes
Home sale: No right to terminate?
The most likely reason for this is that the relocation company wants to have a guaranteed sale so as to get a new mortgage in the new location. Understand that the relocation company generally works ...
- 21k
8
votes
Accepted
Is it legal to move to a different US state before moving out of the country to avoid paying state income tax abroad?
All US states have their own policy on what they consider "residency" and what they consider a taxable resident.
So for example, California has income taxes while Nevada does not. Lets IMAGINE that ...
- 20.2k
6
votes
Relocating - Shall I sell my house now or wait for its value to increase?
Usually, sell.
Every month -- arguably every day -- you own the house it is costing you money for mortgage and taxes and upkeep. Unless it is also producing income, or you are actually living in it, ...
- 42.9k
6
votes
Relocating - Shall I sell my house now or wait for its value to increase?
You are making an assumption that the house will appreciate in the short term, which there is no way you can know. You will probably take a bath financially selling a house after one year into a ...
- 53k
4
votes
Is it legal to move to a different US state before moving out of the country to avoid paying state income tax abroad?
Since California is the state with the highest state income tax, I assume they have the highest burden for proving you are no longer domiciled there. In fact they themselves point out that they are ...
- 5,271
4
votes
What distinguishes a moving allowance from a "relocation bonus"?
It will count as income, and you can deduct as much of your moving expenses as allowed by tax laws.
If you also count it as a reimbursement, then you're double-taxed - once for the income and again ...
- 130k
4
votes
Relocating - Shall I sell my house now or wait for its value to increase?
You are weighting a certain cost of the mortgage interest versus the possible gain of the value of the house.
Take the interest you pay per month and divide it by the current value of the house. ...
- 130k
4
votes
Accepted
Employer-Paid relocation as taxable income?
If all of the relocation expenses are paid by your employer to the moving companies, then you should not have any tax liability for those payments. Relocation expenses should be treated as normal ...
- 47.2k
3
votes
Accepted
Is money paid by a moving company for delay of shipment taxable income, or need to be reported when itemizing?
I would consider it a refund. Imagine the estimate was based on hours, weight, miles, gas, and tolls. You pay 1/2 when they pickup, and 1/2 when they drop off your stuff. Then a week later they ...
- 136k
3
votes
Is house swapping possible?
Another possibility that you might consider is to find a renter for your current place and move to your destination. If you have a lease for your renter, your mortgage company can consider that as ...
- 32.7k
3
votes
Accepted
Are relocation expenses that are expensed by employers taxed at the same rate as normal income?
A bonus is taxed by the IRS as ordinary income. And so is this payment for moving expenses.
Sometimes they allow you to decide if you want it tacked onto a regular check or as a separate check.
...
- 136k
2
votes
Relocation to US
As a has-done-it I'd like to attempt answering. Please feel free to ask for clarifications/edits if I miss anything.
How much time does it take to open a bank account in US? And what is the best ...
- 1,926
2
votes
Tax on Irish ETF as US tax resident
TL DR: If you are subject to US tax, you should instead consider converting your assets to US based assets to avoid complex and unfavorable tax treatment of your investments.
Most ETFs held outside ...
- 3,642
2
votes
Relocating to India and reg remittances
If you have been living outside India for some time, you are an NRI and so should not be having an ordinary savings account in India, whether individually or jointly. NRIs are required to convert ...
- 31.6k
2
votes
Accepted
What distinguishes a moving allowance from a "relocation bonus"?
For example, for my employer I received a signing bonus, and a
"relocation lump sum" separate from that signing bonus. The relocation
lump sum is taxed and will appear as income on my W-2, and I ...
- 136k
2
votes
How should a receipt of a tax nomad be formatted?
Sorry to put a damper on things, but you generally need to be aware of the laws of the applicable to doing business with your customers wherever you are and they are.
For example, if you sell things ...
- 3,642
2
votes
How should a receipt of a tax nomad be formatted?
If my company hires an entity, they will want proof that they could deduct the relevant payment from their profits (from their VAT bill etc.) and they will want proof that it was legal to hire this ...
- 22.4k
2
votes
What are the tax implications of paying back taxable relocation?
For the 2021 reimbursement, assuming this is post 2017, the answer depends on how much you repaid.
If you repaid more than $3000, then you can follow the instructions in Publication 525 under "...
- 35.7k
2
votes
Taxation details when changing states in the middle of the same job
From a comment you made to the original question:
If the W2 shows the new address how does the IRS know you've been in
NY?
New York state and a few others are aggressive regarding state income taxes....
- 136k
2
votes
Taxation on Annual Incentive Plan bonus after relocation to a different US state
Yes, Bob will owe taxes to California. Bob relocated in March 2022, and the money was paid in February 2022, when Bob was a CA tax resident, as such it is taxable in CA.
For February 2023, the money ...
- 166k
1
vote
Taxation details when changing states in the middle of the same job
When you move from one state to another, you end up being a partial resident. You remain resident until you move, and you cease being resident after. So all income earned before the move is still ...
- 166k
1
vote
Are postmark dates applicable for repayments as per IRS publication 525?
Imagine I write/mail a check for $5000 as the repayment amount on
12/27/2020.
When does this have to be processed? Is it considered part of 2020's
tax year as long as the check is postmarked prior to ...
- 136k
1
vote
Retain wage level in another country
TL;DR: I want to move to the EU from the U.K. and keep the same pay (though not a Euro-
using destination.) Is this possible?
Yes, it is. If you are self employed and your income is not depending on ...
- 11.6k
1
vote
Taxes regarding relocation - Final Move/Travel
Each employer should specify what they will pay for, or if there is a maximum amount. they will pay. An employer might even give a flat amount no matter what your expenses.
Before the 2018 tax changes ...
- 136k
1
vote
Is money paid by a moving company for delay of shipment taxable income, or need to be reported when itemizing?
If you have the paperwork to support that the check is a discount (refund), then it is not income. Otherwise it looks like income.
- 41
1
vote
Accepted
Should relocation to more expensive area affect home-ownership decision?
As @Four_lo said, you need to evaluate all the costs associated with the buy and all the costs associated with renting. From there you need to figure out what kinda rent you can charge for the ...
- 2,778
1
vote
Should relocation to more expensive area affect home-ownership decision?
Not factoring in changes in value to the market take: the cost of borrowing + property tax + 100-300(home repair and possibly first time buyers insurance). Compare that to the cost of rent. Renting ...
- 111
1
vote
Relocation confusion
The page you're referring to is about the process for employers, rather than employees.
From an employer's perspective, as long as the money they paid out was for qualifying costs up to 8k, they don'...
- 27.9k
1
vote
Relocating - Shall I sell my house now or wait for its value to increase?
It depends where you are going to live and how you are going to pay for your new accommodation. If you are moving within the UK and intend to buy another house you run into the problem that you will ...
- 159
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