update: It has been a few days, and my inquiry has had 17,634 Views, yet no answer. It is a topic that many people seem to be interested in. I hope a tax pro can help bring some clarity. Thanks in advance!
We relocated our home and home-based business cross-country to a different state in 2023. The business is a home-based 2-member LLC filing form 1065, and we also file a married filing jointly 1040 where we claim some unreimbursed partner expenses.
We moved our business property and equipment along with our household stuff. Most business and personal property were moved by a moving company, while the most fragile and expensive equipment was moved personally with us on a cross-state trip.
Since a large part of the moving expenses were related to moving our business, can we deduct any of the moving costs and what is the proper way? Arguably we moved more business property than personal, but for tax purposes, we can claim 30% was business and 70% personal.
Option 1: Can we write off 30% of the moving expenses directly as business expenses on our partnership return, form 1065?
Option 2: If option 1 is not ok, can we include moving expenses as unreimbursed partner expenses on our 1040 personal return, by listing them as part of "Other expenses" on line 20 of the "Business use of your home" worksheet?
Option 3: If neither of the above options is right, is there another?
The moving expenses in particular that we have receipts for are:
a) Moving and Packaging materials
b) Moving and Storage Company
c) 2 Hotel stays on the way
d) Gas pumped on the way
e) A separate pre-move trip associated with the moving. Namely, plane tickets, car rental, and hotel stay for a trip to inspect the new property a couple of months before the actual moving date. We had to make sure it was suitable for both personal and business use. The move would not have been possible without it, so wonder if we can count this in too.
Any help with figuring things out would be appreciated.
