Due to a company consolidation,Rob 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: Rob's deductible moving expense is:

Question

Due to a company consolidation,Rob 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:  Rob's deductible moving expense is:

Quizplus · Accepted Answer

According to IRS guidelines, in order to qualify for deductible moving expenses, the new job must be at least 50 miles further from the old home than the old job was from the old home. Since Rob moved from Boston to San Diego, which is likely to be more than 50 miles from his old home in Boston, this requirement is met. Additionally, since Rob is not reimbursed for his moving expenses, he can deduct them on his tax return. The total moving expenses are $11,200. However, certain expenses such as meals, real estate taxes, and driver's license fees are not deductible. Let's assume these non-deductible expenses are $5,600 (half of the total). Then, the deductible moving expenses will be $5,600.

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