Relocation Packages and Taxes
Lucas got promoted with his company, and he had to relocate. His company agreed to buy his previous home. Is there any advantage for him to wait until January for this transaction to take place?
QUESTION: Lucas in Missouri got promoted with his company, and he had to relocate. He now owns two homes, and his company agreed to buy the previous home. Is there any advantage for him to wait until January for this transaction to take place? He’s going to lose about $10,000 in this deal. Dave doesn’t think there’s any reason to wait.
ANSWER: I don’t think so because when you lose on your personal residence, you can’t write that loss off—I don’t think. I want you to double-check with your tax guy.
It may be that the relocation package has an income value to it that’s going to change your tax rate for the year that you accept it in. Them purchasing the home in this calendar year versus next calendar year might have a difference, so you want to run that past your tax guy because I’m not one. Plus, I’m not privy to all your numbers, and I’m not that good at taxes. I don’t do my own taxes.
If I remember correctly, you cannot write off a loss on your personal residence. But double-check me because I’m sitting here telling you in front of all of America that I’m not good at taxes.