After completing an overseas assignment in Oslo (Norway), Daniel retires from Pelican Corporation and moves to a retirement community in Key West (Florida). Daniel's moving expenses from Oslo to Key West are deductible as they are exempt from the time test.

Question

Quizplus · Accepted Answer

Moving expenses are generally deductible if the move is closely related to the start of work at a new location and meets the distance and time tests. However, if an individual retires after an overseas assignment, the time test is waived, and the moving expenses become deductible. Therefore, Daniel's moving expenses from Oslo to Key West are deductible even though he did not meet the time test.

After Completing an Overseas Assignment in Oslo (Norway), Daniel Retires