The taxpayer was permanently transferred from Denver to New York City and incurr

ID: 2656483 • Letter: T

Question

The taxpayer was permanently transferred from Denver to New York City and incurred the following expenses:

House-hunting trip (including $400 for meals) $1,000

Temporary living expenses for 20 days

(including $500 for meals) 1,000

Travel expense during move

(including $300 for meals 1,000

Moving company's charges 4,000

Brokers fee on sale of home 4,000

$11,000

If the above move occurred this year, the deduction would be:

Zero

$4,700

$7,940

$5,000

None of the above

If the above move occurred this year and the employer reimbursed the employee for all expenses:

The deductible portion of the expenses reimbursed is excludible.

The entire reimbursement is excluded from income.

The deductible portion of the expenses reimbursed is includible.

None of the above

Zero

$4,700

$7,940

$5,000

None of the above

Of the given moving exenses, only travel excluding meals of $700 and moving company charges of $4,000 are deductible.

Thus, correct option is 4,700

if employer reimbursed the employee:

correct option is a-The deductible portion of the expenses reimbursed is excludible.

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