Moving Expenses

[Carlos]

Client is 50% sh in scorp. He moved to new location to manage the business. Client also has w2 job. He makes quite a bit more on the w2 than the scorp.

I am thinking that, even though he may meet the time and distance tests, that the w2 job would be the main job, therefore disqualifing him from being able to claim the moving expenses.

Just wanting to know if my thinking is correct.

[Burke]

Not only that, it has to be a NEW job. It does not have to be with another company, however. If he just moved there for his convenience, it does not qualify.

[Carlos]

Thanks

I think that would also be a consideration in not allowing it. The only thing that might classify it as a new job would be that he is now going to manage it. In the past he just materially participated in the s corp.

Other things going on from past preparer that will need to be corrected, such as claiming personal business exp for scorp on sch c. What a mess.