Question

Which of the following expenses can be deducted as moving expenses?

1. The cost of a trip to purchase a new residence
2. The cost of moving personal belongings
3. Lodging (one night) while en route
4. The cost of gasoline when traveling to the new residence
5. One-half of the cost of meals while en route to the new residence

A. Numbers 1, 2, and 4 only.

B. Numbers 1 through 3 only.

C. Numbers 2 through 4 only.

D. Numbers 2 through 5 only.

E. All of these are deductible as moving expenses.

Answer 1

The cost of a trip to purchase a new residence, the cost of moving personal belongings, the cost of gasoline when traveling to the new residence, and one-half of the cost of meals while en route to the new residence can be deducted as moving expenses.

Step-by-step explanation:

To be deducted as moving expenses, the following expenses are eligible:

1. The cost of a trip to purchase a new residence
2. The cost of moving personal belongings
3. Lodging (one night) while en route
4. The cost of gasoline when traveling to the new residence
5. One-half of the cost of meals while en route to the new residence

Therefore, the correct answer choice is A. Numbers 1, 2, and 4 only. The other options either include ineligible expenses or exclude eligible expenses.