Are Business Moving Expenses Tax Deductible?

Are Business Moving Expenses Tax Deductible

The Internal Revenue Service puts regulations in place that determine exactly what moving services can be deducted from a company’s relocation. These regulations often depend on the type of company. For example, if your company is a corporation or limited liability company (LLC), then the full expense of your move may be deducted from your company’s taxes. This includes the cost of packing, loading, and transporting all business equipment and supplies to your new location.

If your business is a sole proprietorship or partnership, there are certain criteria that your company is required to meet in order to deduct moving expenses from your taxes. First, your company must move at least 50 miles away from your old office location. Second, at least 39 weeks within a 12-month period must be worked in the new location.

Even employees may be able to deduct certain moving expenses from their taxes. Companies can also choose to pay their employees’ moving expenses as well, such as moving vans, meals, lodging, and travel to the new residence. If you wish to do this, keep in mind that you can in turn deduct these costs. Employees, however, cannot deduct any moving expenses from their personal income tax that were paid by the company.

It should be obvious that moving expenses that are not directly related to your move are not deductible, including any personal expenses you incurred as a result of the move. Whether your business meets the above criteria for deducting moving expenses from your company’s income or not, it is still of the utmost importance that you hire an experienced professional mover to assist you with your project. At Atlantic Relocation Systems, we have provided commercial moving assistance to businesses for decades. For more information about how we can help move your company in Indianapolis, IN, please contact us today.