Julian and Deloris move during the current year from their home in Houston to Santa Fe. Julian was a rocket scientist with NASA in Houston and has accepted a new job with the Los Alamos research lab near Santa Fe. Moving expenses and reimbursement information are presented below. • Direct costs of moving themselves, furnishings and other personal belongings to Santa Fe total $8,000.
• A house-hunting trip before their move to Santa Fe resulted in the total costs of $2,500.
• Julian and Deloris incurred commissions and legal costs in the amount of $12,000 in conjunction with the sale of their Houston residence.
• Los Alamos research laboratories reimbursed Julian and Deloris for $5,000 of their moving costs. What is their Moving Expense deduction?

Question

Quizplus · Accepted Answer

The moving expense deduction is limited to the direct costs of moving, which are $8,000. After subtracting the $5,000 reimbursement, the deductible amount is $3,000. House-hunting and selling costs are not deductible.

Julian and Deloris Move During the Current Year from Their