Due to a merger,Allison transfers from Miami to Chicago.Under a new job description,she is reclassified from employee to independent contractor status.Her moving expenses,which are not reimbursed,are as follows: Allison's deductible moving expense is:

Question

Due to a merger,Allison transfers from Miami to Chicago.Under a new job description,she is reclassified from employee to independent contractor status.Her moving expenses,which are not reimbursed,are as follows:  Allison's deductible moving expense is:

Quizplus · Accepted Answer

Allison's move meets the distance test, as she moved at least 50 miles further from her old home to her new job (Miami to Chicago). Additionally, since she was reclassified as an independent contractor, her move would qualify as a deductible expense related to starting a new job. The total expenses listed ($9,300) should be reduced by any reimbursement received, but since none is given in the question, the answer is $5,900, the amount above the standard 2% AGI floor.

Due to a Merger,Allison Transfers from Miami to Chicago