Relocation Package Lump Sum vs Managed Calculator 2027

Compare relocation lump sum vs managed move 2027 — lump sum simpler but taxable. Managed move (BVO/GBO) tax-protected but bureaucratic. Calculate effective value.

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Lump Sum Pros/Cons

Pro: Simple. Cash to spend however you want. Pro: Keep difference if you DIY cheaply. Con: Fully taxable (added to W-2). Con: No support on home sale, temp housing, complex logistics. Best for: simple cross-town move, single person.

Managed Move Pros/Cons

Pro: Tax-protected if grossed-up. Pro: Includes home sale assistance (BVO/GBO), temp housing, household goods shipping, spouse career assistance. Con: Bureaucratic. Con: Vendor lock-in (company chooses movers, real estate agent). Best for: families, home owners, international.

Home Sale BVO/GBO

BVO (Buyer Value Option): company pays your closing costs ($15-30k typical). GBO (Guaranteed Buy-Out): company BUYS your home if no buyer in 90 days. GBO = huge value ($50-150k effective).

Tax Treatment Post-TCJA

2018 TCJA killed moving expense deduction for non-military. All employer-paid relocation = TAXABLE income to employee. Companies offer 'gross-up' (pay extra to cover tax). Always confirm gross-up.

Source: Worldwide ERC Relocation Trends 2026, irs.gov Moving Expense Reform. Last updated: May 2026.