Moving Expenses

June,

I am so pleased to find your website and I have just purchased your book, and Four Steps for recordkeeping.

I have been an indie since 2003, after spending 20+ years in corporate America doing what I do now: providing employee benefits consulting advice to mid-sized and larger companies. I started my business in my home in Illinois and moved it to Smyrna, TN.

My question is, as a sole proprietor can I deduct my moving expenses? The move was more than 50 miles and I did not cease doing business during the move.

Thanks very much,
Pam


Hello Pam,

Only the business portion of your move may be deducted as a business expense. The balance, if it meets certain minimums may be deducted as a personal expense.

If you don't have separate invoices from the mover or a specific way to calculated the business portion you need to review everything you moved. If your business equipment and files filled about 10% of the truck, then take 10% of the cost. Some really organized indies, or those who have been really messed up by movers in a previous experience, keep an itemized list of everything that went into the truck. If you did that, then use your list to come up with a percent for business.

Best,
June