Moving Expense

[geekgirldany]

I have a clients that moved to Louisiana worked there for less than a year and then moved back to Georgia. Husband was laid off from his job in Louisiana.

They were trying to sell the house in Georgia during this time. They did not like Louisiana so they moved back to Georgia.

It appears that the prior year preparer deducted the trips (mileage) they took back to Georgia (in 2010) as a Moving Expense. Is this correct? I have been looking and can not find where it says this is deductible. But seems like I remember reading that the mileage is deductible... just not sure it is moving expense.

They took three trips to Georgia in 2011 and then moved back in June. They were still trying to sell the house. I am trying to figure this out before I finish the return.

Thank you
Dany

[MilTaxEA]

One trip per person is deductible. House hunting expenses are not deductible.

[geekgirldany]

Thanks for responding. After looking through available research books I finally looked at the IRS Pub on moving expenses and it is listed there also. I guess when all else fails look at the IRS Pubs

[MilTaxEA]

TTB has it in the green section for 1040 Line 26. Very good summary.

[FEDUKE404]

The rules for Form 3903

One trip per person is deductible. House hunting expenses are not deductible.

And the rules have been that way for a looooong time!

Another possible fly in the ointment: Was there a legitimate "move" in the first place and did/does the client meet the IRS time requirements for staying in the new (now old?) job location?

Enjoy!

[geekgirldany]

TTB has house hunting expenses. I was not sure on expenses of selling the house.

Yes he meets the time requirements as they do not apply because he was laid off from the job.

[Burke]

Could any of the travel back to GA be considered job-search expenditures? Mileage, if undertaken in the search for a job in his same field, would qualify on Form 2106 even if he did not obtain a new job. TTB 4-24.

[geekgirldany]

The only thing I am taking is the mileage for them moving back to Georgia. The trips before that were for selling the house and checking in on it. He was not searching for a job when he came back.

People are having a rough time. He got another job in Georgia and then got laid off again.