C is corrent. The requirement is to determine the amount of moving expense that Ryan can deduct for 2012. Direct moving expenses are deductible if closely related to the start of work at a new location and a distance test (i.e., distance from new job to former residence is at least 50 miles further than distance from old job to former residence) and a time test (i.e., employed at least 39 weeks out of 12 months following move) are met. Since both tests are met, Ryan’s unreimbursed lodging and travel expenses ($1,000), cost of insuring household goods and personal effects during move ($150), cost of shipping motorcycle ($300), and cost of moving household furnishings and personal effects ($2,000) are deductible. Indirect moving expenses such as pre-move househunting, temporary living expenses, and meals while moving are not deductible.
A is incorrect. Deductible expenses total $3,450.
B is incorrect. Deductible expenses total $3,450.
D is incorrect. The meals en route are not deductible.
|
