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Topic
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Davidson was transferred from Chicago to Atlanta. In connection with the transfer, Davidson incurred the following moving expenses:
Moving the household goods $2,000
Temporary living expenses in Atlanta 400
Lodging on the way to Atlanta 100
Meals 40
What amount may Davidson deduct if the employer reimbursed Davidson $2,000 (not included in form W-2) for moving expenses?
A. $100
B. $120
C. $500
D. $520
A, Qualified moving expenses are limited to the expenses for moving the household goods ($2,000) and lodging ($100). Meals are not deductible during a move and temporary living expenses are never deductible. The $2,100 of qualified expenses is reduced by the $2,000 reimbursement from the employer.
What is the difference between lodging and temporary living expenses?
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