tax question on moving expense

[jhelgesen]

Got a tax question for you guys.

I'm relocating from NC to SC, pass all the mileage tests etc.

Did the move of my belongings myself. I've used boxes and materials before as deductions without issues.

Question is, I bought a 20' enclosed trailer to move everything with. Of course I'll be keeping it to use as a race trailer, but at tax time next year, can I claim the trailer as a moving expense? It was cheaper than having a moving company move my stuff....

Thanks!

[targa911S]

You can only deduct if you moved for work. If you just felt like a change in scenery you're out of luck.

[KFC911]

Im no tax expert, but imo you can 'claim' anything you want to. Just be willing (in the unlikely case that you're audited) to accept the fact that the IRS doesn't agree

[jhelgesen]

yes, move was for work.

Don't know if I need to claim "trailer" or "moving expense of X" and have the reciept to back it up.

[KFC911]

"moving expense of x" seems legit to me...

[berettafan]

I wouldn't sign a return with the purchase price of a trailer on it as a moving expense.

if you owned a business and bought the trailer for a one time bsns use and the remainder of it's life it was used for personal stuff that trailer would not be deducted on the business return. seems a similar logic would apply here.

the 3903 instructions do not specifically disallow the purchase of a trailer but....

[berettafan]

btw, when the IRS looks for personal expenses being treated as business expenses they will focus on whether you received 'personal enjoyment' from the item/service.

[KFC911]

The chances of the IRS looking are? Let me be clear, I'm legit on my returns, but if it's a deduction "open to interpretation", then I would take my chances...I've never been audited however.

[berettafan]

IMO deducting a trailer used one time for moving and 100 times for racing is not legit. my answer to a client on that would be 'no'. you might be able to argue otherwise.

i recall a tax class in college where the instructor told us to write any assumptions on the front of the return we were preparing; i wrote "assuming no audit". he didn't see the humor.

your chances of audit depend on a how many 'flags' your return presents. overly large itemized deductions, existence of a schedule C bsns, etc. are just a few things that get 1040's audited. a very small % of returns gets audited.

[jhelgesen]

I look at typical moving expenses, using a moving company for a move like mine would be 15k +. I spent half of that on the trailer......

I have a year to think about it......

[jrdavid68]

Does it pass the laugh test? If you were an IRS agent conducting the audit and saw that you spent $xxxxx dollars on a trailer to move when you could have rented a Uhal for $xxx, would you laugh at using it as a deduction? If so, it's probably not a legit deduction.

[KFC911]

Hey John, Don't use the trailer until after you file, then it's a 100% moving expense (at least in my world)...

[jhelgesen]

hey, I'm using it for storage right now, have my stuff in it till I can get in the house.......hmmmmm

[jhelgesen]

Or put a big "PODS" sticker on the side......yeah, that will work.....

[targa911S]

live in it for a while.

[red-beard]

As a minimum, you could deduct the milage on the trailer and the tow vehicle. That will get you close to a dollar a mile. Do not forget to add around town mileage with either vehicle.

When I towed my 914 from San Diego to Houston, I deducted mileage for each vehicle. It was much less of a write-off than if I had the cars shipped, but it did add up to some reasonable money. I'm not sure what your trailer cost, but it paid for the used tow dolly.

[berettafan]

mileage rate for moving expenses is .18

[berettafan]

max deduction for storage expense (if you actually had storage expense) is 30 days.