Due to a company consolidation,Tran transfers from Boston to San Diego.Under a new job description,he is reclassified from department manager to a staff member.His moving expenses,which are not reimbursed,are as follows: $\begin{array}{lr}
\text { Transportation } & 1,200 \
\text { Meals } & 300 \
\text { Lodging } & 400 \
\text { Cost of moving household goods } & 4,000 \
\text { Pre-move house hunting costs } & 2,500
\end{array}$ Renaldo's deductible moving expense is:

Question

Quizplus · Accepted Answer

Moving expenses are deductible only if the taxpayer meets the following requirements:1. The taxpayer's new principal place of work is at least 50 miles farther from his old residence than his old principal place of work was.2. The taxpayer is employed full-time for at least 39 weeks during the first 12 months after arriving in the general location of the new principal place of work.3. During the 24 months before the move, the taxpayer's old residence was his principal place of abode and during the 12 months after the move, the taxpayer's new residence is his principal place of abode.In this case, Tran meets all of the requirements. His new principal place of work is in San Diego, which is more than 50 miles farther from his old residence in Boston than his old principal place of work was. He is employed full-time for at least 39 weeks during the first 12 months after arriving in San Diego. And during the 24 months before the move, his old residence in Boston was his principal place of abode and during the 12 months after the move, his new residence in San Diego is his principal place of abode.Therefore, Tran's moving expenses are deductible. The deductible moving expenses are the reasonable expenses of:1. Transportation2. Meals3. Lodging4. Cost of moving household goods5. Pre-move house hunting costsThe total of Tran's deductible moving expenses is $1,900 + $300 + $400 + $4,000 + $2,500 = $8,400.

Due to a Company Consolidation,Tran Transfers from Boston to San