Alexis (a CPA) sold her public accounting practice in Des Moines and accepted a job with the Seattle office of a national accounting firm. Her moving expenses are not deductible because she has changed employment status (i.e., went from self-employed to employee).

Question

Quizplus · Accepted Answer

Alexis may be able to deduct her moving expenses under certain circumstances, even though she changed employment status. The IRS allows individuals to deduct expenses related to a job relocation if the new job is located at least 50 miles further from their old home than their previous job location. Additionally, the individual must meet a time test where they must work full-time in the new location for at least 39 weeks during the 12 months following the move. Therefore, if Alexis meets these requirements, her moving expenses may be deductible.

Alexis (A CPA) Sold Her Public Accounting Practice in Des