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New Member
posted Dec 10, 2020 7:57:19 AM

Self Employed Moving Expense and Deductions

Hello TurbTaxians! 

My wife is self-employed and we moved from State A to State B to expand her business.  While I understand moving deductions at a personal level are not deductible now, surely they are allowed for the business?  Can an expert weigh in here?

Thanks!

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1 Best answer
Level 15
Dec 10, 2020 8:17:59 AM

Although personal moving expense are not allowed the cost to move the business assets can be a business expense deductible on the Sch C  only  if they are paid/billed  separately from the total cost of moving.

4 Replies
Level 15
Dec 10, 2020 8:03:48 AM

For tax years 2018 through 2025, the deduction of certain moving expenses is suspended for nonmilitary taxpayers. In order to deduct certain moving expenses, you must be an active member of the military and moving due to a permanent change of duty station.

 

See https://www.irs.gov/pub/irs-prior/p521--2018.pdf

Level 15
Dec 10, 2020 8:17:59 AM

Although personal moving expense are not allowed the cost to move the business assets can be a business expense deductible on the Sch C  only  if they are paid/billed  separately from the total cost of moving.

New Member
Dec 10, 2020 9:12:19 AM

Thank you - so just speaking in general terms.  If part of our move was her stuff and that amounted to $8,000 of cost, I can write that off on Schedule C.  Right?

Level 15
Dec 10, 2020 9:24:54 AM

@AZMavDad wrote:

If part of our move was her stuff and that amounted to $8,000 of cost, I can write that off on Schedule C.  Right?

What constitutes "her stuff"?

 

As @Critter-3 stated, the only part of the moving costs that would be deductible are those involving business assets (e.g., office furniture, equipment, machinery, et al).