Common Relocation Expense Types

Always Look for Business Purpose First & Payee 1. Transportation of Household Goods – “Excludable” if paid to employee Moving Bill – includes packing/unpacking/tips Insurance In-transit Storage (30 day limit) Personal Car Use to Move Household goods ($.20 per mile limit) U-Haul Rental Moving Pets (air freight) Appliance hook-up 2. Expenses of Moving from Old to…Details

Guaranteed Buyout Option (GBO) Savings Sample

Direct Reimbursement Vs Guaranteed Buyout Option (GBO)   Parameters Sales Price Actual Closing Costs % Actual Closing Costs $ Gross-Up Costs: Federal (marginal) FICA Medicare Tax Rate Estimated Gross-Up Rate Gross-Up $ $400,000 9.0% $36,000.00   27% 6.20% 1.45% 34.65 53% to total closing costs $19,080.00 Costs with Direct Reimbursement Closing Costs $36,000.00 Gross-up $19,080.00…Details

Market Trends

By Brian M. Carney  From The Wall Street Journal Online In a different age, in a different city, the former Chase bank building at 20 Pine Street in New York’s financial district would not exist. It would have been demolished long ago to make way for yet another gleaming glass tower. It’s an old, undistinguished office…Details

When to Switch to a Fixed Rate Mortgage

By Terri Cullen From The Wall Street Journal Online More than $2 trillion of adjustable-rate mortgages come up for interest-rate resets in 2006 and 2007, according to Moody’s Economy.com. For homeowners who want to refinance to a fixed-rate loan, the timing couldn’t be worse — the average rate for 30-year fixed rate mortgages is at the highest…Details

Tax Season Tips for Transferees

If you were one of thousands of employees in 2005 who were relocated in a company-generated move, do you know what you can deduct this tax season? Peter K. Scott, tax counsel to the Worldwide ERC® Coalition – Center for Governmental Issues, notes that “Being relocated by one’s company usually means that some costs incurred…Details