Client is self employed as an educational consultant. This year, she received a scholarship to earn a masters degree in that field and relocated to another city. She continues to work, primarily online with fax and phone and some travel.
She incurred some moving expenses to relocate. Her move was not for a new job, so I presume the expenses are not deductible as moving expenses. Can they be reported as deductible business expense, since the university course-work is work-related?
"R. Pile" wrote
I think the Service would say no to that. The expense is not an ordinary or necessary expense of that business activity, at least as I see it. If for some chance the Masters degree is a necessary business expense, it might not be ordinary for people in that same field to relocate to obtain it.
There might be some deductible portion for the moving of her business FF&E. But the whole move? Business related? Household goods, pets and all?
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