Self-employeds have room to move

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in Small Business Tax

Q. I’m currently self-employed. Can I deduct moving expenses if I relocate to a warmer climate? N.V., Bristol, Conn.

A. It depends. Deductions are allowed only for job-related moves that meet two tests: (1) The new job location must be at least 50 miles farther away from your old primary residence than your old job was; and (2) as a self-employed individual, you must work full time for at least 39 weeks during the first 12 months and a total of at least 78 weeks during the first 24 months after you arrive in the area. In contrast, employees must meet the 39-week part of the second test, but not the 78-week part.

Tip: Self-employed business owners who meet the stricter requirements can deduct their moving costs, even if the move is for personal reasons like a desire for warmer weather. 

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