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 the choices are true.

Question

Quizplus · Accepted Answer

To satisfy the distance test for the moving expense deduction, the distance from the old residence to the new place of work must be at least 50 miles further than the distance from the old residence to the old place of work. This is necessary to ensure that the move is not just for convenience, but for a significant change in location. A is incorrect because individuals can still qualify for the moving expense deduction if they move for reasons related to starting work with a new employer or a transfer with the same employer. C is incorrect because the business test requires the taxpayer to be employed full-time for 39 weeks within the first 12 months after the move, not the first 52 weeks. D is incorrect because the moving expense deduction can also apply to expenses associated with moving the taxpayer and their household members, as well as travel expenses related to the move.

Which of the Following Is a True Statement