Question

In terms of meeting the distance test for purposes of deducting moving expenses, which of the following statements is correct?

a. The taxpayer's new job location must be at least 50 miles away from the old job.
b. The taxpayer's new residence must be at least 50 miles away from the new job.
c. The taxpayer's new residence must be at least 50 miles away from the old residence.
d. The taxpayer's new job location must be at least 50 miles farther from the old residence than the old residence was to the old job.
e. None of these.

Answer 1

The correct statement for the distance test for deducting moving expenses is that the taxpayer's new job location must be at least 50 miles farther from the old residence than the old residence was to the old job (d).

Step-by-step explanation:

In terms of meeting the distance test for purposes of deducting moving expenses, the correct statement is: d. The taxpayer's new job location must be at least 50 miles farther from the old residence than the old residence was to the old job.

This distance test is one of the tests that the Internal Revenue Service (IRS) requires for a taxpayer to qualify for moving expense deductions on their federal income tax return. The idea is that the move should be associated with starting a new job or business, or transferring to a new job location, and it should be substantially farther from the taxpayer's old residence in comparison to the old job location.