Are Company Paid Moving Expenses Taxable?

Whether you’re moving your business locally or from state to state, tax laws concerning commercial moving services and expenses can be quite complex. For example, there are some moving expenses that are always taxable, while others can qualify as a tax deduction only under specific circumstances. Whatever the case may be, there are a multitude of stipulations that must be met in order for a company to collect deductibles.

Moving Expenses that You Can Deduct

All costs associated with purchasing or renting a new location, as well as the cost of moving business supplies, equipment, and inventory from one location to the next, are considered deductible moving expenses. You must, however, keep good records to substantiate all costs associated with the company move.

If you are in the process of starting a new business, you can also deduct your personal moving expenses if your relocation qualifies with the IRS guidelines. For example, you must be classified as self-employed.

Moving Expenses that You Can’t Deduct

It’s safe to say that you can’t deduct moving expenses that are unrelated to the move of your business, such as meals. If you are self-employed business owner, you also can’t deduct personal moving expenses if you don’t move within one year of the date you started working at your new location unless you have proof of the cause.

Keep track of all company moving costs that you believe qualify as tax deductibles. If any questions arise during this process, get in contact with your full-service moving company. At Atlantic Relocation Systems, we are more than happy to serve you throughout your company’s relocation, offering our industry knowledge and award-winning customer care. Contact us today to learn more about our moving services for commercial businesses!