What moving expenses can I deduct?
If you qualify for the moving expense deduction, by meeting the distance test and the time test, there are two categories of expenses which you can deduct. First, you can deduct what it cost for you and your family (if they reside in your household) to travel from the old location to the new location. This includes transportation, lodging, parking fees, tolls, etc. However, it does not include your meal expenses. If you used your own car in traveling from the old location to the new location, you can claim your automobile expenses in one of two ways - you can claim the actual costs of gas, oil and repairs, or you can claim a deduction based on the miles driven (for the 2006 year, you can claim a rate of 18 cents/mile).
In addition to your transportation costs, you can also claim the costs associated with moving your household goods and personal effects from your old home to your new home. This includes things like the cost of packing and transporting the things kept in your home (furniture, books, appliances, etc.), any storage you used for these goods in between moves (for up to 30 consecutive days), insurance for the goods, the costs for moving a pet or automobile, etc. You can also claim the cost of connecting and disconnecting utilities, although you cannot claim the cost of connecting a phone line in your new home.