Sara Tripper is a sole proprietor with two employees, Jake and Nancy. Sara decides to relocate her business from Kenton to Westchester, and Jake and Nancy agree to relocate as well. All three decide to move their families to Westchester. Sara agreed to reimburse Jake and Nancy for their moving expenses.
(a.) Nancy's old residence was 13 miles from the old job location, and the new job location is 61 miles from her old residence. After the move, Nancy worked full-time for the next two years. What are the federal income tax consequences for Nancy and Sara regarding the reimbursement of Nancy's moving expenses?
(b.) Jake's old residence was eight miles from the old job location, and the new job location is 60 miles from his old residence. After the move, Jake worked full-time for the ﬁrst 52 weeks, but he worked only part-time after that. What are the federal income tax consequences for Jake and Sara regarding the reimbursement of Jake's moving expenses?
(c.) Sara's old residence was 10 miles from the old job location, and the new job location is 75 miles from her old residence. After the move, Sara worked full-time for the next 52 weeks; however, she only worked full-time 20 of the next 52 weeks. What are the federal income tax consequences to Sara regarding her qualiﬁed moving expenses?

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The Answer of Sara Tripper is a sole proprietor with two employees, Jake and Nancy. Sara decides to relocate her business from Kenton to Westchester, and Jake and Nancy agree to relocate as well. All three decide to move their families to Westchester. Sara agreed to reimburse Jake and Nancy for their moving expenses.
(a.) Nancy's old residence was 13 miles from the old job location, and the new job location is 61 miles from her old residence. After the move, Nancy worked full-time for the next two years. What are the federal income tax consequences for Nancy and Sara regarding the reimbursement of Nancy's moving expenses?
(b.) Jake's old residence was eight miles from the old job location, and the new job location is 60 miles from his old residence. After the move, Jake worked full-time for the ﬁrst 52 weeks, but he worked only part-time after that. What are the federal income tax consequences for Jake and Sara regarding the reimbursement of Jake's moving expenses?
(c.) Sara's old residence was 10 miles from the old job location, and the new job location is 75 miles from her old residence. After the move, Sara worked full-time for the next 52 weeks; however, she only worked full-time 20 of the next 52 weeks. What are the federal income tax consequences to Sara regarding her qualiﬁed moving expenses?

Sara Tripper Is a Sole Proprietor with Two Employees, Jake