Skip to main content

How to Deduct Business Moving Expenses

 Alt feature: A moving truck in the street.

Relocating a business takes quite a bit of time, energy, money, and knowledge. You should make sure to prepare as well as possible, especially if you're completely inexperienced. Whether you're relocating your business somewhere nearby or to a whole other state, there's always the question of how to deduct business moving expenses. Luckily, we're here to discuss the dos and don'ts and make this job easier for you.

Two main things you need to know

The first thing you should consider before deducting business moving expenses is that the move consists of two parts.

●      The relocation of the business itself

Of course, the business relocation is the central part of the whole thing. This includes relocating all the stationary and any items that are in your offices.

●      The residential move

Of course, if you're relocating your business somewhere far away, you'll need to relocate as well. You shouldn't look at these two ventures separately but rather as two sides of the same coin.

Alt-tag: People unloading a moving truck before deducting business moving expenses. 

Caption: Before you research what you can deduct out of the business moving expenses, make sure to learn about the basics.

Stay organized

Of course, the most important thing not only when you want to deduct business moving expenses but also for the relocation itself is being organized. To stay organized during relocation, you need to plan it on time. Whether you're big on planning or not, make sure to create a timetable and stick to it as best as you can. Even though not everything will go according to plan, you'll have much better chances if you try.

Moving expenses for employees

Deducting employee moving expenses isn't a very straightforward thing. There's a limited percentage of moving costs that employees themselves can deduct from the taxes. Nevertheless, businesses can pay their employees whatever they want regardless of standing customs. Later, these expenses can be deducted from the company's budget. No matter the particular expenses (whether it's paying for a moving company or travel costs and meals), the company can place the obligation upon themselves. 

Find an experienced moving company

One of the best things you can do to ensure that all the different aspects of your relocation are covered and handled well is to hire a good moving company. Make sure to find someone who's experienced in commercial moving and who knows what they're doing. According to the experts at Pro Movers Miami, finding reliable movers will not only mean less work for you, but you'll also have someone to rely on and ask any questions you might have. 

Alt-tag: A moving truck with movers posing next to it. 

Caption: One of the most important things you'll do both when it comes to deducting business moving expenses and the whole move is hiring the right moving company. Choose wisely.

Which expenses should you deduct?

There are certain things that have a deductible cost and others that don't. Make sure to know the difference. These are the most easily deductible business expenses:

●      Moving business equipment, office supplies, and any other inventory from one office to another

●      All costs that are associated with purchasing your new office

Make sure to write down any expenses that you'll later deduct to avoid making any mistakes.

Find ways to save money while you deduct business moving expenses

The fact that you'll be able to deduct certain business moving expenses shouldn't stop you from finding ways to save money. Once you get into it, you'll see that there's a lot that you can save on. For example, you can find a moving company that offers additional services for free or has excellent discounts.

DIY your interstate move?

Another way in which you can potentially save money without having to deduct business moving expenses is DIY-ing the move. However, interstate moving can be quite a hassle. Make sure that you're prepared for it. Know that good time management is crucial, and you should have the help of all your employees. 

Alt-tag: Cardboard moving boxes that are great for most items you'll relocate. 

Caption: Relocating DIY can be tough. However, if you manage to do a good job, you'll probably save some money.

Personal moving expenses

As we've stated previously, the other thing you need to consider when planning your business move is the residential move that'll happen simultaneously. Know that you can actually find a way to deduct your personal relocation-related expenses as well. However, you'll need to meet some IRS rules and guidelines in this case. 

You need to pass two IRS tests with flying colors to be qualified to deduct your personal moving expenses. 

●      The distance test

To pass this test, your future work location needs to be 50 or more miles farther from your former home than your previous work location was. Although it's a bit confusing, rules are rules. If this is the case, count yourself lucky. 

●      The time test

If you want to qualify as a self-employed person (which is necessary to deduct your personal moving expenses), you need to meet specific criteria. As the IRS states, you have to work full-time for a minimum of 39 weeks over a one-year period. Of course, if the full-time hours are different from the standard (40-hour-weeks) in your line of work, make sure to mention this. 

Things you can't deduct as business moving expenses

There are also some things that you will not be able to deduct while relocating your new business

● Expenses that are not directly connected to your business move aren't usually deductible. 

● You cannot deduct business moving expenses that aren't in accordance with the rules and regulations that the IRS demands.

● Since you can deduct business moving expenses and business expenses, you need to choose between the two. Of course, make sure to choose wisely. Consider all the factors and see which option pays off more. 

Photos used:


Popular posts from this blog

Copycat Boston Pizza's Bandera Bread

Have you ever had a craving for something but then once you looked at it you realized, I can make that myself for next to nothing? That's how I felt last night I thought about ordering in some food but then realized I really don't want to spend any money. I really wanted pizza bread from Boston Pizza. So I recreated it and oh my goodness was it ever good.  Don’t knock the simplicity this dish is sweet and salty and savoury all in one. The best Bandera Bread you can make is at home in your own oven, it costs Pennie’s on the dollar making it a frugal craving fixer that anyone can create!   Pizza Bread Dough 1 cup warm water 1 tsp instant yeast 1 tsp sugar 2 cups flour 1 pinch of salt  Seasoning 1 tbsp melted butter 1 tsp garlic powder 1 tsp onion salt 1 tsp parsley 1 tsp rosemary 1 tsp basil 1 tsp oregano 1/2 tsp sugar 1. Combine the water, yeast, and 1 tsp of sugar and pinch of salt in the mixing bowl and let stand for 5 minutes. Add the flour and salt

Affordable Ways To Make Your Home Look Luxurious

How do they do it? Professional designers seem to pull it off so effortlessly, but how will you make your home look more luxurious? You could just employ a professional or you can personally undertake the task of transforming your home into a place of luxury on a budget. In order to save money on your purchases, be creative and vigilant in your pursuit for the perfect style. Follow our budget-friendly ways for making your home a vision of luxury. Think it through, choose a style Luxury look isn’t enough to go on, so before you start shopping and wasting your money on furniture and decorations you might not even use in the end, first do some research. Go online and do some window shopping and find which style is more to your liking . An elegant Victorian style or something more modern and chic? Don’t get me wrong, you may want to mix and match, but before you commit by buying anything, consider what look you are going for. White is the color of elegance Choosing white as yo

DIY Table Revamp

I wanted to share a little DIY with you guys that involves duct tape! A few months ago my daughter's little chair that goes with her table she sits at every day tore and she made it worse by pulling all of the stuffing out of the seat! What started out as a quick fix turned into a great idea. She loved her seat so much that she has now decided that her table has look cool too so being the smarty pants that she is, she tore her table!