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J.K. Lasser's Small Business Taxes 2013: Your Complete Guide to a Better Bottom Line by Barbara Weltman

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Moving Expenses

If you move your business to another location (e.g., you relocate your offices to larger quarters) or you move equipment to another location (e.g., you move machinery from 1 plant to another), your moving costs are deductible. There is no requirement that your new location be any special distance from the old one.

In general, if you personally move from 1 home to another, you cannot deduct the cost of moving your furnishings and family because these are personal expenses. However, if you relocate because of a change in jobs or a new business, you may be able to deduct your moving expenses. The tax law allows a personal deduction for moving expenses for certain job-related moves.

To claim deductible moving expenses, you must show 3 things:

1. That your move was of a sufficient distance (distance test).
2. That you worked at your new location for the required length of time—or were prevented from doing so (time test).
3. That, if you are an employee, your expenses are not paid or reimbursed by your employer.

Distance Test

The distance between your new job or business location and your former home must be at least 50 miles more than the distance between your old job or business location and your former home. If you move to another city or state, generally you have no difficulty in satisfying the distance test. Where you simply move across town, be sure that the move is of a sufficient distance to make your expenses deductible.

Example
You take a job in the ...

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