Expenses While Changing Work Locations

Hi June,

For the past several years, I have owned a portrait photography business in Florida as a sole proprietor. I've closed the business now in anticipation of a move to Tennessee, where I plan to re-open my business as a full-time venture. If I make business purchases like new equipment prior to the actual start-up in Tennessee, will they qualify as business deductions on my taxes? Someone once told me that if you purchased items prior to being "official" (licensed), then you couldn't write them off.

Thanks, Cheryl D


Hi Cheryl,

And I bet that someone was Aunt Tillie whose grocer's son once delivered food to an accountant. Right?

I assume you did not stop being a photographer during the move. You simply put things on hold while you packed up boxes and made the trip. You are not changing professions, simply changing locations. I'm sure that if you met someone on the trip who said he wanted to use your services, you'd take the information and contact him as soon as you were settled in your new place. You see you were open for business even though your studio was on the move.

Your business did not end its existence. And so because you were in business and willing to take clients all your expenses are the same as before and after the move.

Were you not already in business but had expenses preparing to go into business those costs would be start-up costs and would be treated differently on your tax return than regular business expenses.

And, as always, read the book that can simplify your tax and financial life, AND save you money!SELF-EMPLOYED TAX SOLUTIONS .

-- June