Have a Tax Question? Ask a Tax Expert
Thank you for allowing me to be of service to you regarding your tax questions. If you were to form an LLC and you are the sole member, you can utilize Schedule C of your personal 1040 to report income/expenses. In Florida, your daycare business would require obtaining a business license to do so, but rental property does not. If you are moving from Wisconsin to Florida because of employment/job, you will be able to deduct moving expenses. Please let me know if I have answered all of your concerns. If not, please come back to me for clarification. Thank you.
yes, I know moving expenses can be deducted for employment/job; but I am currently employed and when going down there I will be self employed. can the moving expenses still be deducted?
yes, but I am currently employed and when moving down there i will be self employed, so not moving to become employed by an employer for a job, can they still be deducted? or does that not matter?
whoops, did not realize when hitting the enter key it would send reply, so reply sent twice before done with my response
I will forward the criteria for moving expenses in a moment.
I believe you can claim your moving expenses based on the following http://www.irs.gov/publications/p521/ar02.html#en_US_2012_publink1000203446
I have appointments with clients for the next several hours, but please post any further concerns you have, and I will answer them when I return if you are willing to wait. Thank you for your patience.
You can deduct your moving expenses if you meet all three of the following requirements.
Your move is closely related to the start of work.
You meet the distance test.
You meet the time test.
After you have read these rules, you may want to use Figure B to help you decide if you can deduct your moving expenses.
Your move must be closely related, both in time and in place, to the start of work at your new job location.
I will chat with you later. Thank you.
I will review the link to the IRS you provided and let you know if I have any questions regarding it. However, I will not be get back for awhile. you reviewed and commented on the employer/job area, but I see there is an area that covers those who are self employed. If you want to, you may look at this section further down the pub where it has an example of a self employed accountant moving to another state. In mentions he has to have 78 weeks of full time work within 2 years in the same general area of where he moved to. Please check this out and see my first inquiry. It appears if I am self employed before moving, I full fill the requirements.
another question, at tax time do I fill out a schedule C for each business, one for the llc payroll company, one for the daycare, and one for the condo rental? thanks
I will answer your last question first. You will utilize a Schedule C for each business (payroll and daycare) and the condo rental would go on Schedule E (rental property).
As to the self-employed aspect, please see the following:
For purposes of the time test for self-employed persons, the following three rules apply.
You count any full-time work you do either as an employee or as a self-employed person.
You do not have to work for the same employer or be self-employed in the same trade or business for the 78 weeks.
You must work within the same general commuting area for all 78 weeks.
It is my opinion that you would qualify to deduct moving expenses. Please let me know if you require further information or clarification when you are able.
thanks for the info on the schedules for each one and verifying with what I see that I can deduct the moving expenses.