Unlock Hidden Tax Savings: How Long Island Businesses Can Turn Office Relocations into Strategic Deductions in 2025
Office relocations are a significant investment for any business, but Long Island companies have a unique opportunity to maximize tax benefits during commercial moving projects in 2025. While individual moving expense deductions remain largely suspended under current federal tax law, businesses operating in the competitive Long Island market can still leverage substantial tax advantages when relocating their operations.
The Current Tax Landscape for Business Relocations
Business moving expenses are generally deductible as ordinary and necessary business expenses, regardless of whether you meet the IRS tests for personal moving expenses, since relocating offices is considered a normal operating expense. This represents a significant advantage for Long Island businesses planning relocations in 2025.
According to Section 162a of the tax code, all necessary and ordinary business moving expenses within a taxable year are tax-deductible, including the cost of moving office supplies, tools, work-related equipment, computers, office equipment, furniture, collections, inventory, and parts from one business location to another.
Maximizing Deductions During Commercial Moves
Businesses can easily deduct all moving expenses if registered as an LLC or corporation, including location scouting, transportation, and loading and unloading costs against business income, with these deductions falling under Section 162 of the Internal Revenue Code.
Key deductible expenses for Long Island businesses include:
- Professional moving services and transportation costs
- Packing materials and supplies
- Equipment relocation and installation
- Temporary storage during the transition
- Site preparation and setup costs
- The cost of buying or renting a new location may also be deductible
New York State Considerations for 2025
As of 2025, New York State generally follows federal rules and does not allow moving expense deductions for most civilian taxpayers, typically conforming to federal adjusted gross income calculations. However, some specific situations involving business relocations may have different treatment under New York tax law, though these are complex scenarios requiring professional tax advice.
On February 3, 2025, Mayor Eric Adams proposed the “Relocation Assistance Credit for Employees” (RACE) program, designed to encourage out-of-state companies to relocate to New York City, while the existing Relocation and Employment Assistance Program (REAP) will be extended for five years, providing tax credits for relocating jobs to designated areas within NYC.
Strategic Planning for Long Island Businesses
The most important requirement for deducting business moving expenses is that they must be necessary and non-capitalizable under other tax code sections, with businesses required to demonstrate proof of incurred payments through meticulous record-keeping.
Long Island businesses should consider timing their relocations strategically. If the TCJA provisions expire without replacement, we could see a return of moving deductions for non-military individuals starting in 2026, with the deduction potentially returning under pre-TCJA rules if Congress allows the expiration to proceed.
Working with Professional Moving Services
Partnering with experienced local moving companies like Dunbar Moving, which has been serving Long Island businesses for over 30 years, ensures proper documentation and professional handling of commercial relocations. Dunbar Moving is a full-service, fully licensed and insured moving company located in Stony Brook, New York, with experienced team members who are seasoned professionals with a thirty-year track record of local moving.
The company treats business equipment and valuable items with exceptional care, understanding that moving in Long Island’s desirable business locations requires a different level of service. This attention to detail is crucial for businesses claiming tax deductions, as proper documentation and professional service records support deduction claims.
Documentation and Compliance
To maximize tax benefits, businesses should consult with tax experts to understand regulations for business moving expense deductions. Maintaining detailed records of all relocation expenses, including professional moving services, equipment costs, and facility preparation, ensures compliance and maximizes potential deductions.
For Long Island businesses planning relocations in 2025, the key is understanding that while individual moving expense deductions remain limited, business relocations continue to offer substantial tax advantages. By working with experienced professionals and maintaining proper documentation, companies can turn necessary relocations into strategic tax-saving opportunities while positioning themselves for continued success in the competitive Long Island market.