We moved from California to Pennsylvania during 2018. Should relocation expenses be included in the cost basis of the old house, new house, or no house?

[DBinSD]

We moved our primary residence from California to Pennsylvania. Can the moving expenses be included in the cost basis of old house, the new house, or neither? Can other expenses related to the relocation (eg, transportation, temporary housing, etc.) also be included in the basis? My home-based business also moved. How should I treat the business portion of the relolaction expenses? 

[DoninGA · Accepted solution]

Moving expenses cannot be included in the basis of a home you sold or purchased, nor any other expenses related to the move.

Due to the tax code changes moving expenses are not deductible on a federal tax return, except for military permanent change of station, for tax year 2018 thru 2025.  

[DBinSD]

Thanks for that. What about the portion related to the home office, since that involved moving furniture and equipment?

[re2boys]

Moving expenses are allowable on your part-year PA income tax return (the gaining state) if they meet PA criteria.  See <a rel="nofollow" target="_blank" href="https://revenue-pa.custhelp.com/app/answers/detail/a_id/1365/kw/moving%20expenses%20from%20Pennsylva...> for details.