Car Rental > Questions and Answers > Can I deduct rental car costs as a moving expense?

 

Whether you are considering a move or have already completed a move this tax year, you may be asking yourself, "Can I deduct rental car costs as a moving expense?" As with most tax questions, the answer is "it depends." In general, moving expenses are only deductible if it is related to starting a new job. The main criteria are that the move be within one year of starting your new job and at least 50 miles away. Also, certain retirees and survivors who move to the United States are also eligible. 

 

If you are eligible to deduct your moving expenses, rental car expenses are one of the items you can deduct. Reasonable transportation costs can be deducted, such as airfare or rental car expenses, moving truck rentals, or mileage reimbursement if you use your own car. If you have any questions about your eligibility to claim moving expenses, consult the IRS or your tax advisor. For additional information regarding your claiming moving expenses, please refer to IRS Publication 521. This publication details eligibility requirements and deductible expenses.