Planning to maximize moving expense deduction and to minimize includable reimbursements

Article Abstract:

Section 217 of the Internal Revenue Code allows moving expenses of an employee, sole proprietor or partner to be deducted if they are incurred or paid as part of a relocation to a new principle place of work as long as they are reasonable expenses of travel, meals or lodging; meals and lodging for temporary quarters at the new job site for up to 30 days after employment begins; moving household goods and personal effects; travel, meals and lodging in moving to a new residence; or incident to the sale, purchase or lease of new or old residences. The two tests that must be passed in order for moving expenses to be considered deductible are described, and examples of the tests are provided. Deductible and nondeductible expenses, reimbursements, and state tax implications are described.

Research, Moving, Household, Household moving

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Recent changes increase possibilities for writing off start-up expenses

Article Abstract:

Tax practitioners and the U.S. Internal Revenue Service are still struggling to find appropriate delineations between the classification of expenditures incurred in the start-up of a new business or the expansion of an existing business amortizable under Section 195, those requiring capitalization under Section 263, and those deductible under Section 162. A discussion of court cases before the enactment of Section 195 that required the classification of start-up costs as ordinary or necessary (deductible in the year incurred), or as capital costs to be amortized over several years is included, and several cases influencing the classification of start-up costs for tax purposes are discussed; the implications of Section 195 and its interpretation are discussed as well.

Venture capital

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