A Special Rule for Foreign Moves

For a move by a U.S. citizen or resident alien to a new place of work outside the U.S. or its possessions, the moving expense deduction also includes the reasonable expenses of moving household goods and personal effects to and from storage, and the cost of storing such items for part or all of the period during which the taxpayer worked at the new, foreign location as his or her principal place of work.

However, if the individual also qualifies for the foreign earned income exclusion, unreimbursed moving expenses may be disallowed to the extent that they are allocated to or chargeable against the excluded earned income.