Mike Hansen has adjusted gross income of $28,000. During the year, Mike decided he needed a larger home. He purchased a home on a golf course in the same town as his first home. Mike incurred $7,500 in moving expenses. How much of this can he deduct from adjusted gross income?

Question

Quizplus · Accepted Answer

Under the Tax Cuts and Jobs Act, moving expenses are not deductible for most taxpayers for tax years 2018 through 2025, except for active-duty members of the Armed Forces who move due to a military order. Since Mike Hansen does not fall into this category, he cannot deduct any moving expenses.

Mike Hansen Has Adjusted Gross Income of $28,000