Moving expense

[TAXMAN]

OK New for me. TP meets all rules for moving expense. However when I look at his receipts I find where he bought a horse trailer $3700.00 to move his horse,hay, lawn equipment,tractor, and gas operated equipment that the movers would not transport. He still has the trailer. Deductible or not?. No he is not a farmer.

[Jack from Ohio]

Not deductible. If he had rented a trailer, rental would be deductible.

[kcjenkins]

However, if a rental was not available, which rental horse trailers are few and far between, then if he sold the trailer at a loss, I could argue for the loss being a deductible moving expense.

[Jack from Ohio]

However, if a rental was not available, which rental horse trailers are few and far between, then if he sold the trailer at a loss, I could argue for the loss being a deductible moving expense.

I would love to hear you convince an auditor.... Moving companies and truck rental companies, given notice in advance, can have a truck or trailer anywhere anytime.

[michaelmars]

KC brings up an interesting point, I once had a movie producer that was on location for 6 months, she bought and sold a car and the loss was much less than a rental would have been. I did take the deduction.

[kcjenkins]

Yes, I'm not saying it would be easy, but assuming the client tried and was not able to get a rental, or only at an exorbitant cost, if you can defend this as a reasonable business decision, it can be done. It all comes down to the old "reasonable and necessary" test.