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wellsfam11
New Member

Can our small business S-Corporation deduct relocation expenses related to move from one state to another?

 
4 Replies
MichaelDC
New Member

Can our small business S-Corporation deduct relocation expenses related to move from one state to another?

Yes, you can, whether you are moving your business within your state or from state to state. The move can be divided into two different types:

  • The business move, including the moving of all computers and peripherals, equipment, supplies, furniture, office equipment, inventory, and parts, and
  • The move of the owners to a new home, directly related to the move of the business.
Business Moving Expenses You May Deduct

The cost of moving business equipment, supplies, and inventory from one business location to another is a deductible business expense, as are costs associated with the purchase or renting of a new location. Be sure to keep good records to substantiate all costs associated with this business move.

The Personal Moving Expenses

You want to claim unreimbursed moving expenses. You can also include the cost of traveling to the new location for yourself and other members of your household. You can include the actual cost of oil, gasoline, parking fees and highway tolls. In lieu of using the actual cost of gasoline and oil, the IRS permits you to calculate those costs using the standard mileage rate.

For a long move such as yours, you might include the cost of lodging at a hotel on the way to your new home. Other

reasonable moving expenses may include the cost of rental trucks, short-term storage, and boxes.

There are the 2 tests that must be met to be able to deduct moving expenses:

  1. Distance test -  The distance between your new job and your former home must be at least 50 miles farther than your previous employer is from that home.
  2. Time test - You must work full-time for a minimum of 39 weeks during the initial 12-month period that starts on the day you arrive in the new location. You can still satisfy this requirement when the 39 weeks are not consecutive and even when it's for multiple employers. (Typically, this means you start and hold a new job within 3 months of your move.)

Here's what to do:

  1. Open (continue) your tax return.
    (To do this, sign in to TurboTax and click the
    Take me to my return button.)
  2. In the search field, search for moving expenses and then click the "Jump to" link in the search results.
  3. Follow the onscreen instructions through the interview.

 Please feel free to post any additional details or questions in the comment section.


Abboushi
Level 1

Can our small business S-Corporation deduct relocation expenses related to move from one state to another?

Beginning in 2018, personal moving expenses are deductible only deductible in certain circumstance by military members.  Also, all reimbursed business expenses are gone to on the Schedule A.  You may be able to take the deduction on your state return, as lone as the state does not confirm the the new tax act, like in CA.

dill4fam
Level 2

Can our small business S-Corporation deduct relocation expenses related to move from one state to another?

@MichaelDC Please remove (or edit) your response to reflect the TCJA changes. TY!

Db0411
New Member

Can our small business S-Corporation deduct relocation expenses related to move from one state to another?

Hi, 

i just want to verify this information posted by @MichaelDC  is correct with tax law changes during 2018? I know you cannot take a personal write off any longer for relocation. Are you saying the business writes off both item1. business equip/furnishings and item  2. the cost of the owners move?

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