Many of us will temporarily move ourselves for a week to the beach, mountains, or any other vacation spot during summer months.
In addition to these summer trips, many of us will be on the move from our permanent residence, which peaks during the summer months.
If you find yourself looking to move into a new home this summer here are a few items to help you keep your finances in order.
Plan for Expenses
With so many expenses associated with moving, it is easy to overlook some. Here are a few questions to get you thinking about what expenses you can expect.
- Are you selling your current home?
- Realtor costs?
- Does your carpet need updating before selling? Walls need a new coat of paint? What else needs touching up?
- Buying a new home?
- What changes do you plan to implement after moving in? New furniture, painting, landscaping etc.
- What utility companies are you going to use at your new residence?
- Renting?
- Rental applications, security deposits, pet fees, and rental insurance add up!
- Are you planning on moving yourself or hiring a moving company?
Potential Tax Savings
Did you know some moving expenses are tax deductible?
- Relocating for a new job? – Moving expenses can be deducted on your tax return in certain circumstances. Please use this IRS resource to see if your move qualifies.
- Charitable deductions
- Are you downsizing? Too much stuff? Think about donating extra clothing or household items to local charities. You can include these on Schedule A of your tax return if you itemize your deductions.
- Property Tax, Mortgage Interest
- When moving to a new home you can include your property tax and any mortgage interest paid on Schedule A of your tax return.
Big Decisions around Moving
While moving to a new residence can be costly, the point of this article is to make you aware of some expenses to expect so that you can plan ahead and set forth a budget in order to move most financially efficient as possible.
Buying or selling a home can have significant impacts or your financial situation. Please contact us for a comprehensive financial plan that will help you prepare for these impacts and most efficiently use your money!
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