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Business Guys: Is Business Moving Expense Deductable in US

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  • Business Guys: Is Business Moving Expense Deductable in US

    I am having trouble finding any references on the US IRS site on claiming business moving expenses. Does anybody have any experience with this.

    I had my shop/business in a trailer in Iowa. I moved it to Texas. I would think that the expenses of this move would be a legit business expense, but where do I claim it? Or is it? Anybody know?
    Paul A.
    SE Texas

    Make it fit.
    You can't win and there IS a penalty for trying!

  • #2
    Anything you do to improve your financial standing so that you can pay more taxes is tax deductible. You can deduct moving expenses if your job requires it. This is an opinion only and not a legal rendering I'm not looking to go to jail for giving legal advice !!
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    Thank you to our families of soldiers, many of whom have given so much more then the rest of us for the Freedom we enjoy.

    It is true, there is nothing free about freedom, don't be so quick to give it away.

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    • #3
      like YOD says, you really need advice specific to your situation, but as a general principal businesses are taxed on profit so legitimate expensive for the period are deducted before calculation of tax. The only area i can see there being a problem is if there was significant disbursement in renovating a building or such; these are likely not going to be viewed as expenses but capital items, so the need to be expensed (depreciated) over time. Really a Q for your accountant though if your not comfortable expensing it all
      .

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      • #4
        Go ahead and deduct it and if you get audited just send 'em here.

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        • #5
          Everthing you need to know is in IRS publication 521 including the criteria for self employed persons.

          http://www.irs.gov/pub/irs-pdf/p521.pdf
          Free software for calculating bolt circles and similar: Click Here

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          • #6
            If you're not self-employed, moving expenses are deductible if your new job is at least 50 miles farther from your old home than the distance between your old home and your old job.
            If you're self-employed, I would imagine you have to demonstrate a financial reason for the move.

            But like GKman says, don't trust tax advice from a machinist forum
            Last edited by lazlo; 03-21-2011, 07:35 PM.
            "Twenty years from now you will be more disappointed by the things that you didn't do than by the ones you did."

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            • #7
              Nice try guys. Evan, that pub is all about PERSONAL moving expenses. I won't even try to deduct that as I have maintained my home in Texas for the past 20+ years and only had temporary quarters in Iowa. What I moved was my shop trailer. New tires, gas, etc. Seems to me that it should be a business expense, but where do I enter it?

              I am on the line with IRS now. Third person that they transfered me to and been waiting about 25 minutes for him/her to pick up. I hate jazz music.

              I guess I will get an answer soon. Or not.

              Thanks anyway.
              Paul A.
              SE Texas

              Make it fit.
              You can't win and there IS a penalty for trying!

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              • #8
                If it is indeed a business expense, you had to make entries for the expenses somewhere in your books. Those accounts would be summarized on Schedule C. I would check with your accountant about how to create the accounts and charge the expenses. Are you using Accounting Software to keep your books?

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                • #9
                  Reminds me of when I rented office space and one day I asked the landlord, who had his own business on the premises, if something he was involved in was a business expense.
                  "John", he said to me, "when you've got your own business, everythings a business expense!"
                  "Patriotism is the last refuge of a scoundrel"

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                  • #10
                    Originally posted by CCWKen
                    If it is indeed a business expense, you had to make entries for the expenses somewhere in your books. Those accounts would be summarized on Schedule C. I would check with your accountant about how to create the accounts and charge the expenses. Are you using Accounting Software to keep your books?
                    Sorry, I am my accountant and my books are in Excel.
                    Paul A.
                    SE Texas

                    Make it fit.
                    You can't win and there IS a penalty for trying!

                    Comment


                    • #11
                      Then what's the problem?

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                      • #12
                        Tires for the shop trailer if it is a business asset would then be equipment repair and deductible.
                        If you deduct mileage as a business expense then the gas, insurance, vehicle maintenance etc is not deductible.

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                        • #13
                          Evan, that pub is all about PERSONAL moving expenses.
                          Nope, it specifically mentions self employed persons and moving their business.

                          When you are self employed in an unincorporated proprietorship personal expenses ARE business expenses.

                          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 test).
                          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 do not have to work for the same employer or
                          be self-employed in the same trade or business for
                          the 78 weeks.

                          You must work within the same general commuting
                          area for all 78 weeks.

                          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 are
                          not considered self-employed if you are semi-retired, are a
                          part-time student, or work only a few hours each week.
                          Last edited by Evan; 03-21-2011, 10:42 PM.
                          Free software for calculating bolt circles and similar: Click Here

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                          • #14
                            An accountant once told me "File aggressively."

                            Translation: if you don't claim it you have 0 chance of that deduction. If you do claim it you'll probably get it. At worst you'll be in the same situation you'd be in if you hadn't claimed it.
                            "A machinist's (WHAP!) best friend (WHAP! WHAP!) is his hammer. (WHAP!)" - Fred Tanner, foreman, Lunenburg Foundry and Engineering machine shop, circa 1979

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                            • #15
                              Gawl Dern Right its Tax Deductable

                              This is 1 of things about Corps offshoreing manufacturing facilities that pisses me off to no end.

                              Not only do they get Write Down the liquidation of assets they sell off at the US Manufacturing facility. They also are allowed to Deduct the expenses associated with constructing new facilities in China. Write Down the cost of New Machinery in China - And MOVE massive amounts of cash assets offshore without penalty

                              If you or me John E. Taxpayer wanted to retire offshore and move the proceeds of our "Not so Long Ago Wall St Raided 401K" to another country we "Fortunately" are entitled to pay Capitol Gains on those funds

                              ..
                              Last edited by JoeFin; 03-22-2011, 04:45 AM.

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