If the Summerfields move to another state, can the cost of travel expenses, such
ID: 2593765 • Letter: I
Question
If the Summerfields move to another state, can the cost of travel expenses, such as lodging while in transit, be deductible as a moving expense? Explain your response
Tax Item
Amount
Bart’s Earnings
$110,000
Betty Ann’s Earnings
$125,000
Federal Tax Withholdings
$22,700
State Income Tax Withholdings
$10,750
FICA & M/C
$17,978
Savings Account Interest (3.0% per year)
$3,200
State Refund from Prior Year
$2,425
Home Mortgage Interest Paid
$12,500
Real Estate Taxes Paid
$24,000
Charitable Contributions
$3,000
Unreimbursed Medical Expenses
$1,800
Stock Ownership: United Motor Company (purchased 9 months ago & which they still hold)
Current Value: $4,000
Cost basis: $8,000
Whole Life Insurance Policy
Face Value: $1,000,000
Cash Value: $15,000
Owner: Bart
Beneficiary: Betty Ann
Insured: Bart
Policy Dividend: $300
Tax Item
Amount
Bart’s Earnings
$110,000
Betty Ann’s Earnings
$125,000
Federal Tax Withholdings
$22,700
State Income Tax Withholdings
$10,750
FICA & M/C
$17,978
Savings Account Interest (3.0% per year)
$3,200
State Refund from Prior Year
$2,425
Home Mortgage Interest Paid
$12,500
Real Estate Taxes Paid
$24,000
Charitable Contributions
$3,000
Unreimbursed Medical Expenses
$1,800
Stock Ownership: United Motor Company (purchased 9 months ago & which they still hold)
Current Value: $4,000
Cost basis: $8,000
Whole Life Insurance Policy
Face Value: $1,000,000
Cash Value: $15,000
Owner: Bart
Beneficiary: Betty Ann
Insured: Bart
Policy Dividend: $300
Explanation / Answer
while moving from one state to other in connection with job change or principle place of self employment change are deductible.
In the given case the expense of travel and lodging is deductible.
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