Winston, a calendar-year taxpayer, was employed and resided in Boston. On Februa
ID: 2568417 • Letter: W
Question
Winston, a calendar-year taxpayer, was employed and resided in Boston. On February 4, 2016, Winston was permanently transferred to Florida by his employer. Winston worked full- time for the entire year. In 2016, Winston incurred and paid the following unreimbursed expenses in relocating.
Lodging and travel expenses while moving
$1,000
Meals while in route to Florida
300
Cost of insuring household goods and personal effects during move
200
Cost of shipping household pets to new home
100
Costs of moving household furnishings and personal effects
3,000
What amount of the above expenses is deductible as moving expenses on Winston’s 2016 federal tax return? Which expenses are included in the deductible amount and which expenses are excluded from the deductible amount and why?
Lodging and travel expenses while moving
$1,000
Meals while in route to Florida
300
Cost of insuring household goods and personal effects during move
200
Cost of shipping household pets to new home
100
Costs of moving household furnishings and personal effects
3,000
Explanation / Answer
Expenses Deductible moving expenses Lodging and travel expenses while moving 1000 1000 Deductible Meals while in route to Florida 300 Non deductible Cost of insuring household goods and personal effects during move 200 200 Deductible Cost of shipping household pets to new home 100 100 Deductible Costs of moving household furnishings and personal effects 3000 3000 Deductible 4300 Meals are not deductible moving expenses it is not allowed by IRS. All other expenses mentioned above is deductible as it is direlty related to moving of person from one place to anothet in US
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