My wife is a self employed speech therapist, we moved last year out of state for better business opportunities. Are the costs associated with the move deductible as a business expense? If so, would it be a misc expense?
You could report those expenses as moving expenses if you meet the requirements.
Moving expenses are not reported on Schedule A, rather they are adjustments that lower your Adjusted Gross Income.
It would have a similar effect on your income (as being reported on Schedule C), although it would be applied to all your income, not just self-employed, and it would not reduce your self-employment tax.
The requirements are slightly different for a self-employed taxpayer.
Time Test for Self-Employed Persons
If you are self-employed, you must 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 after you arrive
in the general area of your new job location (78-week
For purposes of the time test for self-employed persons,
the following three rules apply.
You count any full-time work you do either as an employee
or as a self-employed person.
You don't have to work for the same employer or be
self-employed in the same trade or business for the 78
You must work within the same general commuting
area for all 78 weeks.
Example. You are a self-employed accountant who
moves from Atlanta to New York City, and begin to work
there on December 1, 2016. You pay moving expenses in
2016 and 2017 in connection with this move. On April 15,
2017, when you file your income tax return for the year
2016, you have been performing services as a self-employed
individual on a full-time basis in New York City for
approximately 20 weeks. Although you haven't satisfied
the 78-week employment condition at this time, you can
deduct your 2016 moving expenses on your 2016 income
tax return as there is still sufficient time remaining before
December 1, 2018, to satisfy such condition. You can deduct
any moving expenses you pay in 2017 on your 2017
income tax return even if you haven't met the 78-week
test. You have until December 1, 2018, to satisfy this requirement.
Self-employment. You are self-employed if you work as the sole owner of an unincorporated business or as a partner in a partnership carrying on a business. You aren't considered self-employed if you are semi-retired, are a part-time student, or work only a few hours each week.
For more detailed information, please click on the link below.
CLICK HERE for Moving Expenses