Bill obtained a new job in Boston. He incurred the following moving expenses: $\begin{array}{|l|r|}
\hline \text { Transportation of household goods and personal effects } & \$ 2,600 \
\hline \text { Cost of transporting Bill's family } & 2,000 \
\hline \text { House-hunting trip } & 1,700 \
\hline \text { Payments to landlord to cancel a lease } & 500 \
\hline
\end{array}$ Assuming Bill is entitled to deduct moving expenses, what is the amount of the deduction?
A) $2,600
B) $4,600
C) $6,300
D) $6,800

Question

Quizplus · Accepted Answer

Under the tax law, only the costs of transporting household goods and personal effects ($2,600) and the cost of transporting the family ($2,000) are deductible moving expenses, totaling $4,600. House-hunting trips and lease cancellation fees are not deductible.

Bill Obtained a New Job in Boston Assuming Bill Is Entitled to Deduct Moving Expenses, What Is