Final answer:
Deductible moving expenses typically include the cost of moving household goods and personal belongings, one night of lodging en route, and gasoline for travel to the new residence. Costs for purchasing a new residence and meal expenses during the move are not deductible.
Step-by-step explanation:
When considering which moving expenses can be deducted, there are specific guidelines set by the IRS. Generally speaking, deductible moving expenses are those that are necessary and directly related to moving your household goods and personal effects, as well as certain personal travel costs associated with relocating to a new home because of a change in job location or the start of a new job.
- The cost of moving personal belongings is typically deductible.
- Lodging (one night) while en route from your old home to your new home can be deducted.
- The cost of gasoline when traveling to the new residence is also a deductible expense.
However, costs associated with the purchase of a new residence, such as trips before the move to look for a new home or the closing costs, are not deductible as moving expenses. Additionally, meal expenses are not generally deductible as part of moving expenses.