Because the tax aspect of any relocation is so important, clear and continual communication with the transferring employee is essential. A transferee should never be surprised at tax time with a large and unexpected payment due to the IRS. It is the responsibility of the transferring employee to understand the tax implications of each relocation […]
To facilitate a relocation, many employers offer home selling assistance to homeowner transferees. Home sale assistance can come in various forms; however, the IRS specifically calls out the Amended Value (AV) program as the favored method in terms of compliance. An AV program allows the transferee to market the property and attempt to find a […]
Tax gross-up is a topic that relocation professionals routinely speak about among themselves but sometimes do not discuss adequately with relocating employees. Gross-up is a complicated subject and we sometimes wrongly assumed that tax discussions should be saved for the tax professionals—particularly if the employer is providing that service. What is gross-up or tax assistance? […]
Arguably, the most complicated discussions surrounding domestic relocations involve the tax piece. For any domestic relocation expenses to be qualified as tax deductible, there are a few requirements that must be met, including: The move must correlate with the start date at a new job location The employee must be employed full time for 39 […]
While most of us struggle with taxes in our native country, imagine what it must be like trying to determine your tax obligation in another country. Making sure you stay square with both the home and host countries requires professional assistance so most companies offer tax services as a part of their general employee relocation […]
One of the things we’ve seen time and time again in our business is that the best relocation policies reflect current realities of the real estate market, with aggressive home marketing assistance programs and incentives to employees to price their homes realistically.
Tax assistance benefits cost an average 55-60 cents for every dollar of taxable relocation expense. In other words, a $10,000 lump sum payment could result in $5,500 to $6,000 of tax assistance costs.
Tax assistance is an expensive and sometimes hidden cost of corporate relocation programs. In fact, it’s the third most expensive benefit in a relocation program, on average, after home sale and household goods.