In May 2018, Regina graduated from the Naval Academy with a degree in engineering and was...

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Accounting

In May 2018, Regina graduated from the Naval Academy with adegree in engineering and was assigned to San Diego as a permanentduty station. In her move to San Diego, Regina incurred thefollowing costs:
$450 in gasoline.
$250 for renting a truck from UPAYME rentals.
$100 for a tow trailer for her car.
$85 in food. $25 in double espressos from Starbucks.
$300 for motel lodging on the way to San Diego.
$405 for a previous plane trip to San Diego to look for anapartment.
$175 in temporary storage costs for her collection of crystalfigurines.
a.) If the government reimburses her $900, howmuch, if any, may Regina take as a moving expense deduction on her2018 tax return?
b.) Is that deduction subject to any conditionsthat could change its deductibility in the future?

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3.6 Ratings (291 Votes)

Overview If an assessee relocates to a new location due to work then after filling IRS Form 3903 he is eligible to claim the cost of moving expenses as a deduction on his federal income tax return However the moving expenses paid by him are only deductible Any expenses reimbursed by the employer are not eligible for See Answer

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