Publication 521 - Moving Expenses - 2011 (Page 6 of 19) in pdf

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Example. Justin quit his job and moved from the east

You count any full-time work you do either as an

employee or as a self-employed person.

coast to the west coast to begin a full-time job as a

cabinet-maker for C and L Cabinet Shop. He generally

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You do not have to work for the same employer or

worked at the shop about 40 hours each week. Shortly

be self-employed in the same trade or business for

after the move, Justin also began operating a cabi-

the 78 weeks.

net-installation business from his home for several hours

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You must work within the same general commuting

each afternoon and all day on weekends. Because Justin’s

area for all 78 weeks.

principal place of business is the cabinet shop, he can

satisfy the time test by meeting the 39-week test.

If Justin is unable to satisfy the requirements of the

Example. You are a self-employed accountant who

39-week test during the 12-month period immediately fol-

moves from Atlanta to New York City, and begin to work

lowing his arrival in the general location of his new principal

there on December 1, 2011. You pay moving expenses in

place of work, he can satisfy the 78-week test.

2011 and 2012 in connection with this move. On April 15,

2012, when you file your income tax return for the year

2011, you have been performing services as a

Joint Return

self-employed individual on a full-time basis in New York

City for approximately 20 weeks. Although you have not

If you are married, file a joint return, and both you and your

satisfied the 78-week employment condition at this time,

spouse work full-time, either of you can satisfy the full-time

you can deduct your 2011 moving expenses on your 2011

work test. However, you cannot add the weeks your

income tax return as there is still sufficient time remaining

spouse worked to the weeks you worked to satisfy that

before December 1, 2013, to satisfy such condition. You

test.

can deduct any moving expenses you pay in 2012 on your

2012 income tax return even if you have not met the

78-week test. You have until December 1, 2013, to satisfy

Time Test Not Yet Met

this requirement.

You can deduct your moving expenses on your 2011 tax

Self-employment. You are self-employed if you work as

return even though you have not met the time test by the

the sole owner of an unincorporated business or as a

date your 2011 return is due. You can do this if you expect

partner in a partnership carrying on a business. You are

to meet the 39-week test in 2012 or the 78-week test in

not considered self-employed if you are semi-retired, are a

2012 or 2013.

part-time student, or work only a few hours each week.

If you do not deduct your moving expenses on your

Full-time work. You can count only those weeks during

2011 return, and you later meet the time test, you can file

which you work full time as a week of work. Whether you

an amended return for 2011 to take the deduction. See

work full time during any week depends on what is usual

When To Deduct Expenses

later, for more details.

for your type of work in your area. For example, you are a

self-employed dentist and maintain office hours 4 days a

Failure to meet the time test. If you deduct moving

week. You are considered to perform services full time if

expenses but do not meet the time test in 2012 or 2013,

maintaining office hours 4 days a week is not unusual for

you must either:

other self-employed dentists in your area.

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Report your moving expense deduction as other in-

Temporary absence from work. You are considered

come on your Form 1040 for the year you cannot

to be self-employed on a full-time basis during any week

meet the test, or

you are temporarily absent from work because of illness,

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Use Form 1040X to amend your 2011 return, figur-

strikes, natural disasters, or similar causes.

ing your tax without the moving expense deduction.

Seasonal trade or business. If your trade or business

is seasonal, the off-season weeks when no work is re-

Example. You arrive in the general area of your new job

quired or available may be counted as weeks during which

location, as an employee, on September 15, 2011. You

you worked full time. The off-season must be less than 6

deduct your moving expenses on your 2011 return, the

months and you must work full time before and after the

year of the move, even though you have not yet met the

off-season.

time test by the date your return is due. If you do not meet

the 39-week test during the 12-month period following your

Example. You own and operate a motel at a beach

arrival in the general area of your new job location, you

resort. The motel is closed for 5 months during the

must either:

off-season. You work full time as the operator of the motel

before and after the off-season. You are considered

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Report your moving expense deduction as other in-

self-employed on a full-time basis during the weeks of the

come on your Form 1040 for 2012, or

off-season.

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Use Form 1040X to amend your 2011 return, figur-

If you were both an employee and self-employed, see

Table 1,

earlier, for the requirements.

ing your tax without the moving expense deduction.

Page 6

Publication 521 (2011)

Publication 521 - Moving Expenses - 2011 Page 6

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