Question

Lina was transferred by her employer IBM from New York to California during 2019. Lina spent $15,000 in moving expenses. Here employer reimbursed her for the entire amount and gave her an additional $10,000 to help her in the rent. Linda's salary excluding all other benefit is $175,000 for 2019. How much Linaâ s gross income for 2019?

		$200,000.
		$175,000.
		$185,000.
		None of these answers.
		$190,000.

Answer 1

With Effective from 2018 through 2025, all employee moving expenses paid to employees by the business are taxable in the hands of employee.

Therefore Gross Income id Linaa for the Year 2019 :

Particulars	Amount
Salaries Excluding benefits	$      1,75,000
Add : Relocation expenses paid by employer	$          15,000
Add : Rent paid by employer	$          10,000
Total Gross Income	$      2,00,000

First Option has to be selected

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