Question

In May 2017, Regina graduated from USC with a degree in accounting and moved to Portland, OR, to look for work. Shortly after arriving in Portland, she obtained work as a staff accountant in a local CPA firm. In her move to Portland, Regina incurred the following costs:

$300 in gasoline.

$265 for renting a truck from UPAYME rentals.

$110 for a tow trailer for her car.

$95 in food.

$30 in double espressos from Starbucks.

$330 for motel lodging on the way to Portland.

$440 for a previous plane trip to Portland to look for an apartment.

$195 in temporary storage costs for her collection of crystal figurines.

a. How much, if any, may Regina take as a moving expense deduction on her 2017 tax return?

b. Is that deduction subject to any conditions that could change its deductibility in the future?

Answer 1

Answer

Generally, you can deduct moving expense :

• Transportation and lodging expenses for yourself and household members while moving,
• The cost of packing and transporting your household goods and other personal property,
• The expense of storing and insuring these items while in transit, and
• Costs related to connecting or disconnecting utilities.

A.

Regina take as a moving expense deduction on her 2017 tax return:

Particulars	Amount($)
gasoline	300
renting a truck from UPAYME rentals	265
a tow trailer for her car	110
motel lodging on the way to Portland	330
temporary storage costs for her collection of crystal figurines	195
Total	1200

Food Expenses not qualify for the deduction

B.

Deduction subject to any conditions that could change its deductibility in the future:

Moving expenses are only deductible in the year they were incurred. Regina must be a full-time employee for 39 weeks during the 12 months immediately following arrival in the new area.