Which of the following is a true statement?
A) Individuals qualify for the moving expense deduction only if they change employers.
B) To satisfy the distance test, the distance from the taxpayer's old residence to the new place of work must be at least 50 miles more than the distance from the old residence to the old place of work.
C) To satisfy the business test, the taxpayer must be employed full-time for 45 of the first 52 weeks after the move.
D) The moving expense deduction is restricted to expenses associated with moving personal possessions to the new residence.
E) All of these are true.

Question

Quizplus · Accepted Answer

To qualify for the moving expense deduction, the taxpayer must satisfy both the distance test and the time test. For the distance test, the distance from the old residence to the new place of work must be at least 50 miles more than the distance from the old residence to the old place of work. Choice A is incorrect because individuals can qualify for this deduction even if they do not change employers. Choice C is incorrect because the time test requires the taxpayer to be employed for 39 weeks during the 12 months after the move, with no minimum requirement during the first 52 weeks. Choice D is incorrect because the moving expense deduction can also cover expenses such as transportation, storage, and lodging.

Which of the Following Is a True Statement