TAXMAN Posted April 1, 2014 Report Share Posted April 1, 2014 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. Quote Link to comment Share on other sites More sharing options...
Jack from Ohio Posted April 1, 2014 Report Share Posted April 1, 2014 Not deductible. If he had rented a trailer, rental would be deductible. Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted April 1, 2014 Report Share Posted April 1, 2014 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. Quote Link to comment Share on other sites More sharing options...
Jack from Ohio Posted April 1, 2014 Report Share Posted April 1, 2014 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. Quote Link to comment Share on other sites More sharing options...
michaelmars Posted April 1, 2014 Report Share Posted April 1, 2014 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. Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted April 2, 2014 Report Share Posted April 2, 2014 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. Quote Link to comment Share on other sites More sharing options...
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