Moving As A Business Expense?


R

R. Pile

Client is self employed as an educational consultant. This year, she
received a scholarship to earn a masters degree in that field and
relocated to another city. She continues to work, primarily online
with fax and phone and some travel.

She incurred some moving expenses to relocate. Her move was not for a
new job, so I presume the expenses are not deductible as moving
expenses. Can they be reported as deductible business expense, since
the university course-work is work-related?
 
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P

paulthomascpa

R. Pile said:
Client is self employed as an educational consultant. This year, she
received a scholarship to earn a masters degree in that field and
relocated to another city. She continues to work, primarily online
with fax and phone and some travel.

She incurred some moving expenses to relocate. Her move was not for a
new job, so I presume the expenses are not deductible as moving
expenses. Can they be reported as deductible business expense, since
the university course-work is work-related?

I think the Service would say no to that. The expense is not an ordinary or
necessary expense of that business activity, at least as I see it. If for
some chance the Masters degree is a necessary business expense, it might not
be ordinary for people in that same field to relocate to obtain it.

There might be some deductible portion for the moving of her business FF&E.
But the whole move? Business related? Household goods, pets and all?
 

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