Question

Mo Rocka is transferred to a new job by her employer. The transfer meets the distance and time tests. She incurs packing and moving expenses of $4,100. The cost of her lodging during the move is $650 and she spends $200 for meals during the move. She drives the 2,687 miles from her previous home to her new home (2017 mileage rate is $0.17 and the 2018 mileage rate is $0.18 per mile). She is reimbursed $5,000 for the cost of her move by her employer. Calculate Mo’s deductible moving expenses if:

The move took place in 2017 and she is employed by a private company: $__________

Answer 1

Given Details :-

The transfer of Mo Rock from her old job to a new job meets the distance and time tests.

Calculation of Deductible Moving Expenses of Mo Rocka :-

Particulars Amount(In Dollars

1. Packing and Moving Expenses 4100.00

2. Cost of Lodging during move 650.00

3. Transportation Expenses(2687*0.17)* 456.79

Total Moving Expenses 5206.79

Less:- Reimbursement from Employer 5000.00

Net Deductible Moving Expenses of Mo Rocka 206.79

* Here Mileage rate taken as 0.17 dollars because the move took place in 2017.

Note :-   

The Expenses deduct for moving are

1. The cost of packing, crating and transporting the households and personal effects.

2. The cost of connecting or disconnecting utilities.

3. The cost of shipping personal car and household pets.

4. The cost of transporting households and personal effects from a place other than the home place.

5. The Storage Expenses.

6. The lodging expenses(including lodging but not meals) to the new place.

7. The car transportation expenses.

8. The transportation expenses(other than own car).

So the expenses relating to meals is excluding from the calculation of moving expeses of Mo Rocka.

Conclusion :-

The amount of deductible expenses of Mo Rocka for the year 2017 is 206.79 dollars.