Moving Expenses

Mr. Azrael: I moved out of a house and sold it and moved into another house. What can I deduct on my income taxes for the sale of my home and any closing costs, points and moving expenses that I incurred while moving into the new home? Brenda Austin Baltimore Dear Ms. Austin: Let's talk about income tax deductions for points and moving expenses. Borrower's often pay "points" to obtain a home mortgage. Lenders refer to these charges as loan origination fee, loan discount, or discount points.

MOVING INTO a new apartment or house is among the most overwhelming of life events, both emotionally and financially. So it pays to know how to eliminate unnecessary moving expenses and to avoid being gypped. In response to a growing problem, Congress last month passed consumer protections and stiffer penalties against rogue movers as part of the new federal highway reauthorization that President Bush signed into law. But the new rules governing interstate moves are not likely to take effect for a while, so for now it's buyer beware.

Long & Foster Real Estate Inc. is offering discounts on furniture, home-improvement products and moving expenses."On-the-Move Savings Plan": To make relocating into and out of the Baltimore, Norfolk and Washington markets easier. Inpartnership with American Airlines, Choice Hotels International, Hertz and Mayflower Transit, clients save 5 to 50 percent on traveling and moving expenses."Home Advantage": Discounts on home improvement products at Hechinger."The Home Buyer's & Sellers's Advantage": Discounts on home furnishings at Hecht's stores.

A ray of legal hope is lifting spirits among the small band of holdouts living in the closed Ev-Mar Mobile Home Park in Savage after a Howard County District Court ruling this week that pulled them back from the precipice of eviction. Judge Neil Edward Axel ruled that the remaining nine families have a right to a Circuit Court jury trial, frustrating for the second time in two months attempts by lawyers for the absentee owners -- heirs of the late Henry and Evelyn Meyn -- to regain possession of the 6.8-acre plot on Gorman Road.

If you receive bonuses, commissions or overtime pay, you soon may see less of that money in your paycheck.Starting next year, employers generally will have to withhold 28 percent of such wages for income tax, up from the current requirement of 20 percent.The change was part of President Clinton's deficit-reduction package. The supplemental-pay requirement is one of a host of lesser-known tax items contained in the law.The higher withholding rate will apply to supplemental income that is paid or listed separately from normal wages.

Members of the Maryland Association of Certified Public Accountants are answering readers' tax questions through April 15.We reported receiving a $4,000 moving expense reimbursement from our employer in 1997 when we actually received it in 1998. This reduced our 1997 deductions by almost $4,000. Should we file an amended return to correct that mistake and get some money back? Or should we have reported it at all, or would it have been correct to have adjusted our moving expense deduction?

If you changed job locations or started a new job, you might be able to deduct your moving expenses. The expenses are deductible in the year paid or incurred, but you can elect to deduct them in the year you are reimbursed.These expenses are deductible, provided that the amount is adjudged "reasonable":* Moving household goods and personal effects.* Traveling (including lodging and 80 percent of the cost of meals) to the new residence.* Traveling (including lodging and 80 percent of meals)

Here are answers from members of the Maryland Association of Certified Public Accountants to readers' tax questions. The Sun will publish answers through April 15.Q: Is there a limitation on temporary housing costs of $1,500? If costs exceed that amount, is the excess amount allowed to be carried over into the subsequent year as a deductible item? Are temporary housing costs part of moving expenses?A: For years up to and including 1993, temporary housing costs incurred as job-related moving expenses are deductible, subject to certain limitations.

Members of the Maryland Association of Certified Public Accountants are answering readers' tax questions through April 15.Q: I moved to Maryland in 1994. Are moving costs, transportation, etc., deductible either on a federal or local level?A: If you moved due to job location, you may be able to deduct moving expenses on your Maryland and federal returns if you meet two tests:First: your new job location must be at least 50 miles farther from your old home than your old workplace was. Second: you must work full time in the new locality for at least 39 weeks during the 12 months right after the move.

MOVING INTO a new apartment or house is among the most overwhelming of life events, both emotionally and financially. So it pays to know how to eliminate unnecessary moving expenses and to avoid being gypped. In response to a growing problem, Congress last month passed consumer protections and stiffer penalties against rogue movers as part of the new federal highway reauthorization that President Bush signed into law. But the new rules governing interstate moves are not likely to take effect for a while, so for now it's buyer beware.

The heirs of the estates that own Ev-Mar Mobile Home Park in Savage expect to split its anticipated $3.6 million sale price once it closes next year, but the few remaining residents of the decaying property bitterly complain they're being offered a pittance to move. The 18 or 19 residents of the wooded, 6.8-acre mobile home park are being offered $500 to leave by the scheduled June 1 closing date. They'll get up to $1,600 more if they agree to leave early, by Sept. 30, plus either $1,500 if they sell their old trailer to the park's owners, or $7,500 if they move their trailer elsewhere.

In a critical review of the Maryland Stadium Authority's financial management, state auditors have questioned whether the Ravens owe the state up to $14 million gained from the sale of seat licenses to fans. The matter has been turned over to the Maryland attorney general's office, which is investigating whether the football team was improperly reimbursed for numerous expenses in connection with its 1996 move to Baltimore. At issue are $36.1 million in expenses - including the team's rent and contributions it made toward the construction of PSINet Stadium - that the team says are "moving related."

Calvert School officials, intent on sealing a sensitive deal with the residents of apartments at 4300 N. Charles St. by Monday, say they hope a morning meeting today will finalize the terms of the tenants' departure and compensation for displacement from their North Baltimore homes. The compensation package on the bargaining table stipulates that all residents leave their homes by the end of August and involves a lump sum of about $500,000 to be divided equally among the 58 units occupied as of March 1, both sides said.

Mr. Azrael: I moved out of a house and sold it and moved into another house. What can I deduct on my income taxes for the sale of my home and any closing costs, points and moving expenses that I incurred while moving into the new home? Brenda Austin Baltimore Dear Ms. Austin: Let's talk about income tax deductions for points and moving expenses. Borrower's often pay "points" to obtain a home mortgage. Lenders refer to these charges as loan origination fee, loan discount, or discount points.

Members of the Maryland Association of Certified Public Accountants are answering readers' tax questions through April 15.We reported receiving a $4,000 moving expense reimbursement from our employer in 1997 when we actually received it in 1998. This reduced our 1997 deductions by almost $4,000. Should we file an amended return to correct that mistake and get some money back? Or should we have reported it at all, or would it have been correct to have adjusted our moving expense deduction?

John Regiec spent yesterday in a chair by his front door on Leo Street, fighting the leukemia certain to kill him within months and waiting for Mayor Kurt L. Schmoke to fulfill a promise to Regiec and his neighbors in Wagner's Point.Last month, residents deeply concerned about air pollution and a high cancer rate asked the city to help buy their homes and relocate them. Schmoke said on May 15 he would respond within 30 days.No one in the South Baltimore neighborhood had heard from the mayor by yesterday.

City Council President Lawrence A. Bell III hopes to block a $31,400 city payment to an East Baltimore organization that he says is involved in an ethically questionable real estate deal with two other closely connected groups.Bell said that today he will ask the Board of Estimates to at least delay payment to a program for socially deprived children called The Chance, run by Fair Chance Inc. An aim of the program is to teach job skills to the youths.Bell said he is troubled because Fair Chance appears to be paying the money it receives from the city indirectly to a company that Fair Chance owns.

John Regiec spent yesterday in a chair by his front door on Leo Street, fighting the leukemia certain to kill him within months and waiting for Mayor Kurt L. Schmoke to fulfill a promise to Regiec and his neighbors in Wagner's Point.Last month, residents deeply concerned about air pollution and a high cancer rate asked the city to help buy their homes and relocate them. Schmoke said on May 15 he would respond within 30 days.No one in the South Baltimore neighborhood had heard from the mayor by yesterday.

City Council President Lawrence A. Bell III hopes to block a $31,400 city payment to an East Baltimore organization that he says is involved in an ethically questionable real estate deal with two other closely connected groups.Bell said that today he will ask the Board of Estimates to at least delay payment to a program for socially deprived children called The Chance, run by Fair Chance Inc. An aim of the program is to teach job skills to the youths.Bell said he is troubled because Fair Chance appears to be paying the money it receives from the city indirectly to a company that Fair Chance owns.

Baltimoreans who thrilled to the Colts in the days of $4 bleacher seats are about to learn an ugly truth: The NFL has gotten more expensive.Much more expensive.The Ravens released the first details of their emerging ticket program yesterday, including a plan to defray moving expenses by charging season-ticket buyers for a one-time permanent seat license.There will be some budget seats, such as $17-per-game tickets at Memorial Stadium this year and next. But when the team moves into its new stadium in 1998, most ticket buyers will find themselves shelling out $500 or $750 for a license, which will give them the right to buy tickets that could cost $450 or more each year.