August 2005 News Update

Are you moving this summer?
If your move is closely related to the start of a new job location, you may be able to deduct unreimbursed moving expenses on your federal tax return. You must also meet certain tests relating to distance and time.

First-time home buyers
Moving can also mean selling or buying a home. If you’re a first-time home buyer, you should know that mortgage interest “points” paid to obtain the mortgage and real estate taxes are expenses that you may be able to itemize and deduct to help reduce the amount of taxes owed.

Selling your main home
If you sell your main home, you may be able to exclude up to $250,000 of gain ($500,000 for married taxpayers filing jointly) from your federal tax return when it’s time to do your taxes. To be eligible for this exclusion, your home must have been owned by you and used as your main home for a period of at least two out of the five years prior to its sale.

Change of address
And don’t forget to report your change of address to the U.S. Postal Service and to the IRS, so you can continue to get your tax refunds.