Question

Clyde currently commutes 55 miles to work in the city. He is considering a new assignment in the suburbs on the other side of the city that would increase his commute considerably. He would like to accept the assignment, but he thinks it might require that he move to the other side of the city.

Determine if Clyde’s move qualifies for a moving expense deduction and calculate the amount (if any) under the following circumstances:

Assume he is employed for 39 of the next 52 weeks.

a. Clyde estimates that unless he moves across town, his new commute would be almost 60 miles. He also estimates the costs of a move as follows:

Lodging while searching for an apartment	$	207
Transportation — auto (100 miles @ 15 cents/mile, rounded)		15
Mover's fee (furniture and possessions)		2,100
Meals while en route		73

a-1. Does Clyde’s move qualify for a moving expense deduction?

a-2. Calculate the amount of deduction.

b. Clyde estimates that unless he moves across town, his new commute would be almost 116 miles. He also estimates the cost of a move as follows:

Lodging while searching for an apartment

$

207

Transportation — auto (100 miles @ 15 cents/mile, rounded)

15

Mover's fee (furniture and possessions)

2,100

Meals while en route

73

c. Clyde estimates that unless he moves across town, his new commute would be almost 130 miles and the movers intend to impose a $795 surcharge on the moving fee for the additional distance. He also estimates the cost of a move as follows:

Lodging while searching for an apartment	$	207
Transportation — auto (100 miles @ 15 cents/mile, rounded)		15
Mover's fee (furniture and possessions)		2,100
Meals while en route		73

c-1. Does Clyde’s move qualify for a moving expense deduction?

    

Yes

No

c-2. Calculate the amount of deduction.

b-1. Does Clyde’s move qualify for a moving expense deduction?

Yes

No

b-2. Calculate the amount of deduction.

Answer 1

A. Zero - Clyde would not qualify for the moving expense deduction. To qualify for an moving expense deduction the new commute from Clyde's current residence would need to be minium of 105miles . That is, his commute from feom his old residence to the new job must be more than 50miles longer than his current commute.

B. Clyde now qualifies for the moving expense deduction (assuming that he is employeed for 39 of next 52 weeks). Estimated cost of $2115 are deductible for AGI . This excludes the cost for lodging while searching for an apartment and meals en route.

C. Clyde qualifies for a a moving expense deduction (assuming he is employeed for 39 of next 52 weeks). Estimated cost of moving increase to $2910 , and this total is deductible for AGI.