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Cost to ship a car: Do I get a tax deduction?

Cost to ship a car: Do I get a tax deduction?

Benjamin Franklin once said, ‘In this world nothing can be said to be certain, except death and taxes.’

This quote sounds too dramatic, doesn’t it?! Can taxes truly be so categorically persistent? In fact, during the past centuries, despite changes in taxation formulas, the principle of taxation per se has remained intact.

Any positive aspects of this persistence – I mean, in addition to the public services that we get? Actually yes! Where there is taxation, there are also tax refunds! In the U.S, not even a government shutdown could get in the way of the tax filing season. Regardless of the rumors that the filing season would be postponed and the tax refunds delayed, that was not the case.

Filing your 2018 tax return

The filing season opened on January 29, 2019, and will continue until April 15, 2019. For those who live in Maine or Massachusetts, the deadline for filing the federal tax returns will be April 17, 2019. Usually, this is the season which raises many questions for those who are filing. How do I know if I have to file a tax return? Which filing status should I choose? What is my tax bracket? Do I have any dependents? What income qualifies as taxable? What items can be tax deductible?

While looking for the ins and outs of taxation, the above questions are just the tip of the iceberg. We’ve discovered many more while exploring the tax-related pages. Also, as if taxes were not complex enough, frequent changes in different formulas or tax categories add to the ‘confusion’.

Changes in the Tax Refund Laws

Usually, there are certain changes in the IRS regulation each year, and this year will not be an exception.
One of the main changes consists of the way moving expenses are considered. According to section 11049 of The House of Representatives, there has been a suspension in treating moving expenses as tax deductible.

For all those individuals who are moving to another city or state for work, the change means that all the moving expenses will not be eligible for tax deduction anymore.

Moving expense deductions before the Tax Reform

Before the changes in the legislation, you could account your moving expenses as tax deductible if:

  • Your employer did not pay or reimburse the moving costs.
  • You passed the Distance test: There needs to be a certain distance from your new work location to your former home.
  • You passed the Time test: You must have worked for a minimum amount of time before moving and also after moving at the new job.

These criteria now are revoked and will not count while filing for tax refunds this year. There is only one exception though!

Military exemption

According to the latest bill passed by Congress the tax reform holds:

“Except in the case of a member of the Armed Forces of the United States on active duty who moves pursuant to a military order and incident to a permanent change of station, subsection (a)(6) shall not apply to any taxable year beginning after December 31, 2017, and before January 1, 2026.”

For more information on this bill, read here.

This new bill is definitely not favorable for all those who have to move for work reasons. Nevertheless, I would say that it makes sense for the military members to be excluded from it. For soldiers and their families, moving is an essential part of life. They are on the road relocating most of the time.

For them, it becomes important to make the moving process as less tiring and stressful as possible. In addition to moving the household, moving a car is often something essential to consider.

Vehicle relocation costs are a significant part of the overall moving expenses. According to the new bill, for all military members who are on active duty, car moving expenses remain tax deductible.

If you are a member of the military, once you are ordained to a permanent change of station, you can file for your car shipping costs in your tax return forms. A permanent change of station includes moving from your home to the first post of permanent duty; from one post of permanent duty to another, or from your post of duty going back home.

Therefore, since moving your car will be tax deductible, the only question remains: how to move it? Would driving it yourself, hiring a driver or asking for an auto-shipping company be the best choice?

We, at Corsia Logistics, have explored the pros and cons of each option. Considering long distances of the usual moves, the practicality and the costs, choosing an auto transport company is the best choice in almost all cases.

Are you assigned to move overseas?

Below are some considerations to help you out while moving your car.

  • Size limitations: Government will only cover the shipping of a standard sedan. If you own an SUV or any other oversized car, you may need to figure out a plan B.
  • Time: You have to make sure that your vehicle will reach the destination within your designated timeline.
  • Licensing: You have to check in advance for local vehicle registration and licensing rules.
    You can check with your relocation office and receive the proper guidelines so that you do not pay any fines.
  • Weight: Check beforehand what the allowed vehicle weight is. In your calculation, take into consideration the items you will leave inside the vehicle. These belongings need to be vehicle-related items such as child car seats, car covers, etc.
  • Modifications on the vehicle: Check in case you have added any modifications to your vehicle if they are ok with the local regulations.

Choosing a good auto-shipping company can save you the stress of worrying about making the right choices. You need a reliable auto transporter who has a track record in shipping vehicles overseas – maybe even tanks –  and can advise you on the process of vehicle relocation.

Corsia Logistics has experience in providing auto transport services nationally and internationally. We know how tiring the moving process can be and we offer our expert advice to facilitate your vehicle relocation experience.

In case you would like to know in more details how shipping a car works, our logistics experts will gladly assist you.

Not a military member?

As explained above, members of the military can still consider their moving expenses as tax deductible. For all other taxpayers though, relocating their vehicle will represent a huge chunk of moving expenses. Therefore, if you are not a member of the armed forces, you need to select your car shipping company very carefully. Reliability and costs are two important criteria you should pay attention to.

In order to check if an auto shipping company is reliable get convinced about its:

  • Licensing
  • Insurance
  • Reviews
  • Quality of customer service
  • Responsiveness
  • Experience

How are prices determined? There are different factors that affect your vehicle shipping quote. They can be summarized as below:

  • Vehicle make and model
  • Pick up and delivery locations
  • Carrier type: open or enclosed
  • Distance traveled
  • Vehicle condition
  • Supply and demand

Whether you need to ship your car from New York to Boston, or anywhere else in the country, we’ll offer suggestions on how to make your car shipping experience less expensive and maximize your overall costs. To learn more about how we calculate car shipping costs, feel free to call us at (818) 850-5258) or request your free quote online.

Which criteria matter more?

If I would have to rank these two basic aspects, I would definitely put reliability first. Especially considering the fact that the moving expenses are not tax deductible anymore, a reliable shipping company becomes a priority.

Price should not be the first or the most important criteria while choosing an auto transport company. Regardless of the lower price, you would not want your car to arrive at its destination damaged or unreasonably late. The post-repairing costs will be much higher, not to mention any inconveniences.

Fun facts about taxes

Since we cannot avoid taxes, let us try to digest the above news on tax deductions with some fun facts:

Taxes seem not only persistent, but also quite complex and time-consuming. If time is money, then lots of money is spent on this process. At least when it comes to car shipping, try to choose wisely so that you optimize your budget and car condition.

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Simon Moore
Great company
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Looking for a logistics company, to ship my car, from California to Illinois,my first search, then Corsia showed up, skeptical. Call and a very friendly secretary: Elena. She guided me through, I scheduled and as she explained, all when smooth as scheduled Very happy I did the right choice. I'll recommend this great Company to anyone that is thinking to relocate a vehicle. Thanks Corsia logistics for your honesty and professionalism!
Elizabeth Woodward
High five's all around!
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Corsia was highly recommended by a friend in the automobile industry. We needed to transport a cargo van from Seattle to Florida. We contacted Corsia who quickly arranged transport within just a few days. Communication was outstanding! Just a few email confirmations and we were all set. Mike was great and arrived right on time and delivered to Florida on schedule. Tip-avoid the hornets nest of auto brokers on line and just contact Corsia for a truly great experience!
Carrol Tiffany
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Corsia has been amazing. Their prices are really competitive but more importantly their customer service has been 5-Star. Elena followed up with me every step of the way, making sure there was no miscommunication between me & the driver. We are using them to ship a 2nd vehicle & would not hesitate to use them again!
Tony Boyd
Definitely recommend
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I have recently used Corsia for long time family car with sentimental value that was moved I have recently used Corsia for shipment of my vehicle from Oregon to Arizona by recommendation from other family member who also used Corsia in the past. I am very pleased on the service and the communication throughout shipment. Ken was my direct contact and kept me informed along the move The car was picked up and delivered as communicated. I did use a enclosed mover and the driver was also clean cut professional and treated car as his own. I would definitely recommend Corsia again with the experience I have had. Thank you. T
Top notch
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Top notch Transport - Porsche 997 Top notch! As easy and efficient as one could possibly imagine. Great customer service.. thank you Luke. Great prices. Check. Timely communications. Check. Clean transport trailer. Check. Supremely careful driver. Check. Timely arrival. Check. Don't mess around elsewhere, just call Corsica and feel confident your transports needs are going to be exceeded. My Porsche 911 rode like a Queen in her enclosed chariot. I've never needed a transport company before, and I surely will use them every time. Do yourself a favor, seriously. Call now.
Geet Mp Haryana
Reliable, efficient
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Corsia rep (Elena) was very proactive. Helped ship a car from CA to GA. She checked in with me via email quote and several phone calls to find me the best possible quote for the fastest available service. After several communications, Corsia was able to schedule a vehicle pickup the next day. The driver communicated well, and the vehicle arrived in final destination faster than we expected in perfect condition. I highly recommend using Corsia's reliable, efficient service.
Cay Liptak
Clean, efficient, wonderful
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Thanks, Corsia! Pickup was so clean, efficient, and wonderful -- my only recommendation is to make sure you schedule it during the day so you can fully review the car in the daylight. Drop off was equally wonderful, and the whole trip went down without a hitch (pun intended!). Seriously, Corsia delivered my Jeep from CT to California with no issues or bumps in the road!
Csaba Kovesdy
Truly positive experience
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Corsia Memphis to LA, mid-size SUV. I looked at 4 different companies amd Corsia was the most responsive of them. While being responsive, they were not unduly aggressive: when I indicated that I need to wait a month before making a decision they stopped contacting me and only came back with a reminder when I really needed it. Once I decided to engage Corsia they found me a transport within two days and the car was delivered (from Memphis to LA) in another two days. I had a truly positive experience.
Kelly Torres
Highly recommend
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Working with Corsia Logistics was a great experience. Working with Corsia Logistics was wonderful. They were able to find a driver right away to transport our car. They were in constant communication as to when the car was getting picked up and dropped off. The driver also communicated with me as to when he would arrive. I would highly recommend Corsia Logistics.
Amy Nelson
Excellent Organization
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Corsia was an excellent company to work with while I transferred my car across the US. A friend of mine suggested I use them as they had been very organized and trustworthy with her own car. I researched a few different place but decided to go with Corsia and I'm so glad I did! Any questions I had throughout the process they answered quickly and clearly. I would definitely use them again in the future and recommend them for others to use.