Moving Expense

[Brian EA]

Client moved from India to the US in december 2005.

Can he claim moving expenses

thanks

brian

[jainen]

meet all the requirements

>>Can he claim moving expenses<<

Does he meet all the requirements to claim them, Brian, and does he have taxable income to claim them against?

[Brian EA]

>>Can he claim moving expenses<<

Does he meet all the requirements to claim them, Brian, and does he have taxable income to claim them against?

I am sorry but i should have provided more information.

He started to work in 2006 and the move was in 2005. For 2006 he met all the requirements . Can the moving expense be claimed in 2006.

thanks
brian

[jainen]

For 2006.... for 2005.

>>For 2006 he met all the requirements<<

Well, obviously if he met the requirements for 2006 he can deduct his 2006 expenses. I'm just guessing, but maybe the question should be whether he met all the requirements for 2005.

[Brian EA]

>>For 2006 he met all the requirements<<

Well, obviously if he met the requirements for 2006 he can deduct his 2006 expenses. I'm just guessing, but maybe the question should be whether he met all the requirements for 2005.

He came to the US for the first time in december 2005.
Never worked in the US in 2005. Met no requirements for 2005


The question is; can he claim the moving expense incurred in 2005 in tax year 2006.

My answer is no. I just need a confirmation, seeing that he moved from overseas.

[erchess]

Where he moved from is irrelevant

My impression would be that as long as he is not a Non Resident Alien for 2005 or 6 where he moved from and whether he was a citizen or even whether he came legally would be irrelevant. Moving from India he obviously satisfies the distance test but if he didn't work until 2006 whether he met the time test seems to be in question.

Let's suppose that he moved late in 2005, paid the moving expenses in that year, had no income in 2005, but satisfied the time test with work in 2006. I believe he could deduct the moving expenses in 2006.

If he was NRA for 2005 or 6 then I would have to research every aspect of his return.

[jainen]

My answer is yes

>>The question is; can he claim the moving expense incurred in 2005 in tax year 2006. My answer is no.<<

My answer is yes, if he paid it in 2006.

[Brian EA]

>>The question is; can he claim the moving expense incurred in 2005 in tax year 2006. My answer is no.<<

My answer is yes, if he paid it in 2006.

Thank You. He paid it in 2005


He bought his airline ticket in India in 2005. He moved to the US in december 2005.

thanks
brian

[jainen]

cash basis

>>He paid it in 2005<<

Then as a cash basis taxpayer he can deduct it in 2005. It would seem that, for the same move, if he qualified in 2006 then he qualified in 2005. Make sure you are considering his visa status as other posts have pointed out.

[Brian EA]

>>He paid it in 2005<<

Then as a cash basis taxpayer he can deduct it in 2005. It would seem that, for the same move, if he qualified in 2006 then he qualified in 2005. Make sure you are considering his visa status as other posts have pointed out.

To put everything in perspective, here is what exactly happened.

Client came to me this morning requesting that I recheck his return that was prepared by a CPA in another city. He said that quite a few nurses came to the US together .They were granted resident visa in India, purchased and paid for their tickets in december 2005. They did not start working until january 2006. No income for 2005.

At time of preparing their tax returns they all went to different tax professionals. Some of the tax pros allowed the moving expenses while others did not. Of course the guy who came to me did not have the moving expense on his return.

Are these nurses allowed to claim the moving expenses is the big question. I am saying no because they are cash basis taxpayers.

Is this correct?

thanks
brian

[erchess]

Ttb 3-4

The way I read the book we all have the answer is that as I thought he can deduct the expenses. Had he had income in 2005 he could have deducted them then with the possibility of having to amend later due to failure to satisfy the work requirement. Since he didn't do that, he may claim them on his 06 return.

[Davc]

He might be in a higher bracket in 07. Let's claim them then!