The United States tax reform bill, which passed in the House of Representatives on November 16 and is currently under consideration in the Senate, has proposed changes that could affect the taxability of relocation benefits beginning in 2018. Please click here to read the most recent press release from Worldwide ERC regarding the plan and its potential impact on the relocation industry. Lexicon® Relocation is taking proactive measures to assess the potential impact to our clients, particularly regarding the following proposed changes:
- Repeal of the exclusion for moving expenses paid or reimbursed by an employer
- Repeal of the moving expense deduction for individual taxpayers
While there are other relocation benefits that could potentially lose their tax-exclusion or tax-deductible statuses, the taxability of household goods moves would have the most noteworthy fiscal impact on our clients and their relocating employees. We will continue to keep you updated as more information is available and once the Senate has voted on the plan. If you have any questions in the meantime, please contact your Lexicon Relocation Account Manager or a Lexicon representative.