Corporate moving can be an expensive process, especially when you are moving an entire business. Many companies are eligible for a moving tax right off and can justify moving expenses. Employees have many regulations they must jump through when they relocate for job related reasons. Our Baton Rouge movers can help you learn what you can deduct and what you can’t.
If you are a corporation or limited liability corporation that is relocating, you can deduct the full cost of your move from company taxes. You can even deduct brokerage commissions you paid to find your new office space. If you are a sole proprietorship or partnership, you must meet two criteria to deduct your moving expenses. First, you must move at least 50 miles from your current location and you must work at least 39 weeks in your new office during the year after you make the move.
Companies can pay any employee moving expenses that it wants to. The company can deduct those payments from company income. The employee that is relocating cannot deduct any moving expenses that were paid for by the company. Employees must abide by the 50 miles and 39 weeks rule as well, but they have limits on what can be deducted at the end of the moving process.
The following moving expenses are deductible: cost of packing and transporting your belongings (whether you move on your own or hire movers), costs to connect or disconnect utilities, cost of transporting vehicles and pets, and cost of storing your belongings for no more than 30 consecutive days.
Remember you can always consult your tax professional to ensure you aren’t missing valuable moving tax write off opportunities. Take advantage of the deductions that your company and your employees can take on their taxes.