I have a question regarding moving expenses for adjustments for AGI, specifically “temporary living expenses.
Becker says “temporary living expenses” are not allowable to deduct as moving expenses, but I came about this question while reviewing:
Which of the following items are not allowable as adjustments for moving expenses without regard to employer provided benefits or other limitations?
a.
Cost of hotel during drive to new home.
b.
Transportation.
c.
Cost of moving household goods.
d.
Expense of breaking lease.
Explanation
Choice “d” is correct. The costs associated with breaking an existing lease are not deductible as moving expenses.
Choices “b”, “c”, and “a” are all allowable moving expenses. All moving expenses must be offset with employer reimbursement amounts prior to claiming any deduction. Additional requirements of length of employment apply and may require adjustment of a previously claimed adjustment if they are not met.
Is a hotel not considered temporary living?
FAR- 87
REG- 81
AUD- 88
BEC-
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