Question

In: Accounting

Each of the following moves represent a permanent change of station EXCEPT: A. A move from...

Each of the following moves represent a permanent change of station EXCEPT:

A. A move from oe permanent post of duty to another

B. A move from  last post of duty to the taxpayer's home within one year of the end of the taxpayer's active duty

C. A move from the taxpayer's home to the first post of active duty.

D. A move from the last post of duty to the taxpayer's home 18 months after the end of the taxpayer's active duty.

Solutions

Expert Solution

Answer: D. A move from the last post of duty to the taxpayer's home 18 months after the end of the taxpayer's active duty.

Explanation:

As per IRS, deduction on moving expenses due to permanent change of station is eligible for the members of the Armed Forces.

The following situations represent a permanent change of station :

  • When the taxpayer moves from his / her home to the first post of active duty.
  • When the taxpayer moves from his / her  permanent post of duty to another
  • Withing 1 year of the end of the active duty, the taxpayer moves to his / her home from the last post of duty.

Thus the option (D) given in the question does not qualify for permanent change of station.  


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