Question

Casey currently commutes 35 miles to work in the city. He is considering a new assignment in the suburbs on the other side of the city that would increase his commute considerably. He would like to accept the assignment, but he thinks it might require that he move to the other side of the city. Which of the following is a true statement?

A. Casey can deduct moving expenses if the distance between his current residence and his new assignment is at least 50 miles.

B. If Casey's move qualifies for the moving expense deduction, he can deduct the cost of meals while en route to his new residence.

C. To qualify for a moving expense deduction the new commute from Casey's current residence would need to be a minimum of 85 miles.

D. If Casey's move qualifies for the moving expense deduction, he can deduct half the cost of meals while en route to his new residence.

E. All of these are false.

Answer 1

The true statement is: C. To qualify for a moving expense deduction, the new commute from Casey's current residence would need to be a minimum of 85 miles. (option c)

Step-by-step explanation:

The tax law allows for the deduction of moving expenses under certain conditions. According to the IRS rules, the new workplace must be at least 50 miles farther from the employee's former residence than the old workplace. This means the correct minimum distance requirement for the moving expense deduction is 50 miles, not 85 miles as mentioned in option C.

Therefore, option C is false, and the accurate statement is that Casey can deduct moving expenses if the distance between his current residence and the new assignment is at least 50 miles, making option A the correct choice.

In conclusion, the accurate answer is option A, and the provided options are not all false, but rather option C is incorrect based on the IRS regulations for moving expense deductions.(option c)