Did you know… there is currently a house bill on the table for US tax reform that if passed, will make all relocation expenses taxable income for your employees relocating? This includes the movement of household goods and storage. The repeal of these moving expense provisions would greatly increase gross-up expenses for your employees relocating.
WorldwideERC website states “The Senate plan released on November 9 repeals the moving expense deduction, as well as the exclusion for moving expenses paid or reimbursed by an employer, effective January 1, 2018. The moving expense deduction makes relocation more affordable for businesses and individuals and spurs economic growth. Without the deduction, a relocation will be costlier for companies and employees, and will impact decisions on whether the move makes sense.”
There is an exception for US military and the bill will not affect expats and their employers. You can read more information about this tax reform on the WorldwideERC website.
Call to Action: Write a letter to your congressman ASAP requesting that they help restore this tool vital to workforce mobility. You can access this information at WorldwideERC or American Moving and Storage Association.
This has been A Relocation Minute on “US Tax Reform” with Bruce Waller, For more information, call 972-389-5673, or email firstname.lastname@example.org or check out our my social media Facebook and Twitter page.
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