deduction for AGI
Toby, a calendar year tax payer, was employed and resided in NY. On February 2, 2009, Toby was permanently transferred to Florida by his new employer. Toby worked full time for the entire year. In 2009 Toby had the following unreimbursed expenses for moving.
Lodging and travel expenses while moving: $3,000
Pre-move housing hunting costs: $1,200
Cost of moving household furnishings and personal effects: $1,800
How much can Toby deduct for moving expenses on his 2009 tax return?
To determine how much Toby can deduct for moving expenses on his 2009 tax return, we need to consider the rules set by the IRS for deducting moving expenses.
1. Distance test: Toby's new workplace must be at least 50 miles farther from his old home than his old workplace was. Since Toby was permanently transferred from NY to Florida, it is safe to assume that his new workplace meets this requirement.
2. Time test: Toby must work full-time for at least 39 weeks during the first 12 months after moving to the new location. In this case, Toby worked full-time for the entire year, so he meets this requirement as well.
Now, let's calculate the deductible moving expenses:
1. Lodging and Travel Expenses: Toby can deduct the actual expenses incurred for lodging and travel while moving. In this case, his total expenses are $3,000.
2. Pre-Move Housing Hunting Costs: Toby can deduct the actual expenses incurred for pre-move housing hunting. In this case, his expenses are $1,200.
3. Cost of Moving Household Furnishings and Personal Effects: Toby can deduct the actual expenses incurred for moving his household furnishings and personal effects. In this case, his expenses are $1,800.
Adding up these expenses: $3,000 + $1,200 + $1,800 = $6,000.
Therefore, Toby can deduct $6,000 for moving expenses on his 2009 tax return, provided that he meets all the eligibility requirements mentioned earlier.