As with most issues related to interpreting the federal tax code, the answer to the question of deducting rental car costs as a moving expense is not entirely clear. The first question you need to ask is whether your situation is eligible for moving expense deductions at all. If you move from one dwelling place to another for any reason other than your job, then your expenses are not tax deductible. If you have to move because of your existing job, or to start a new job, then moving expenses are deductible if you meet two other tests. First, your new job must be at least fifty miles farther from your old home than your old job was. Second, you must work full time for at least thirty nine weeks of the first year after you start your new job. If you meet these tests, then some of your moving expenses may be deductible.

Internal Revenue Service rules do not make it clear if you can deduct the cost of a car rental involved in moving. If you rent a truck to move your belongings, then you can deduct the rental cost of the truck as long as you do not also deduct mileage expense for the same truck. The deductibility of a rental car will depend on a number of factors, such as whether you rented the car away from home as part of a job search or new home search process. If you fly across the country to look for a new house and have to rent a car for that purpose, you may be able to deduct the rental car expense. For 2009, the deductible rate for use of a personal vehicle in moving is 24 cents per mile. You can deduct this amount for your personal car or a rental car, in which case you would not deduct the actual rental fees. You should discuss the details of your particular situation with your tax preparer before you decide how to handle your moving expenses.