Are mortgage interest, moving expenses, and appliances deductible?

September 30, 2008

Date:   Sat, 26 Jan 2008
From:   Arthur

Mr. Gray,

I am in the Air Force and am stationed in California. I am trying to swap assignments with someone at a base in North Carolina. Since it is a swap, the Air Force won't pay for me to move. I want to move so I can buy a home at a lower price than in California. Would my moving expenses be deductible?

Also, is mortgage interest 100% deductible? Are appliances bought for the home deductible? This will be my primary residence.

Thank you for your time.

P.S. Currently fighting the war in Iraq and will make my way back to CA in April.


Date:   31 Jan 2008

Hello Arthur,

Since you are moving for a personal reason and not for an employment-related reason, the moving expenses would be nondeductible.

Mortgage interest for a mortgage secured by a principal residence and for the purpose of purchasing the residence are generally deductible, provided the loan doesn't exceed $1 million. Not all mortgage interest is deductible.

Appliances bought for the home aren't deductible.

Good luck!
Mike Gray

For answers to new questions, subscribe to our newsletter, Michael Gray, CPA's Tax & Business Insight by filling out the form below.

Home    Newsletter Archive    Introducing Michael Gray, CPA    Articles    Tax FAQ   Need Help?    Other Links

Michael Gray, CPA
2482 Wooding Ct.
San Jose, CA 95128
(408) 918-3162
FAX: (408) 938-0610
Hours: 8am - 5pm PDT Monday - Friday

Find us on Facebook
Follow me on Twitter
Connect on LinkedIn
Our Blog

Subscribe to Michael Gray, CPA's
Tax & Business Insight

We respect your email privacy