My husband and I moved three hours north (from va beach to stafford) in order to receive frequent coaching and better resources for our online marketing business (we are independent contractors). Can we deduct expenses under the moving expense deduction? Business growth was our only reason for moving.
Yes - you can deduct moving expenses if you meet two test below:
The distance test - Your new workplace must be at least 50 miles farther from your old home than your old job location was from your old home. If you had no previous workplace, your new job location must be at least 50 miles from your old home.
The time test - as self-employed, you must work (or expect to work) full time for at least 39 weeks during the first 12 months and for a total of at least 78 weeks during the first 24 months immediately following your arrival in the general area of your new work location.
I'm on turbotax self employed online version, and when I try to enter these moving expenses where the online tutorial tells me to do so, it only allows for military. Where do I enter these expenses on your software.
Prior tax law permitted a taxpayer to deduct moving expenses provided the new job location was at least 50 miles farther from the taxpayer’s former home than the former main job location or, if the taxpayer had no former principal place of work, the new job location was at least 50 miles from the taxpayer’s former home. However, under the TCJA, §11048 and 11049, both the taxpayer’s moving expense deduction and the exclusion of an employer’s reimbursement or payment of the taxpayer’s moving expenses have been suspended except for military relocation.
Accordingly, any non-military moving expense incurred by a self-employed person is no longer deductible. @tclayjones
@tclayjones wrote:
I'm on turbotax self employed online version, and when I try to enter these moving expenses where the online tutorial tells me to do so, it only allows for military. Where do I enter these expenses on your software.
Moving expenses are no longer deductible on a federal tax return due to the tax code changes for tax years 2018 thru 2025. Except for active military on Permanent Change of Station orders.
Yes, but what percentage of the move? Is it only for business assets or personal assets as well?
@P Hardy wrote:
Yes, but what percentage of the move? Is it only for business assets or personal assets as well?
Moving expenses are no longer deductible on a federal tax return due to the tax code changes for tax years 2018 thru 2025. Except for active military on Permanent Change of Station orders.
You may deduct, on Schedule C, the cost of relocating only your business assets. As others have said, personal moves are no longer deductible, even if it's for the purpose of being near your new business location.