What amount of the above expenses is deductible as moving expenses on Winston’s 2015 federal tax return?

Acct 323 7980 income tax i (spring 2016) week 3 homework 1) on

For Winston to be eligible for a deduction of moving expenses on his 2015 federal tax return, he must meet the requirements outlined by the Internal Revenue Service (IRS). To qualify for a deduction, Winston must move due to a change in employment or business location and his new workplace must be at least 50 miles farther from his former home than the distance between his old job and home.

In addition, Winston must have worked full-time for at least 39 weeks during the 12 months following his move. If employed by two different employers in those 12 months, only one of those employers needs to meet this requirement. Furthermore, if self-employed, he must work full-time for 78 weeks out of the 24 month period after relocation.

Assuming that Winston meets all of these criteria, then he can deduct certain items related to moving expenses such as packing and transportation costs associated with transporting household items and himself; storage fees; travel costs including lodging but not meals; and post office charges when forwarding mail. He may also include any other miscellaneous applicable expenses such as insurance on household items while in transit or registration fees paid when registering vehicles in their new state.

From the above listed expenses incurred by Winston ($1,000 moving truck rental fee plus $200 for gas), it is likely that he would be able to deduct $1,000 as moving expenses since this expense was directly related to Transportation – which is an allowable deductible expense under IRS rules – provided that all other eligibility criteria are met.