rom S908

Department of the Treasury
Internal Revenue Service

> Attach to Form 1040.

Moving Expense Adjustment

1979

Name(s) as shown on Form 1040

Your social security number

(a)

job location? . miles

(c)

What is the distance from your former residence to your new

(b) What is the distance from your former residence to your
former job location?
If the distance in (a) is 35 or more miles farther than the distance in (b), complete the rest of this form. If the distance is less than 35 miles, you cannot

miles

take a deduction for moving expenses. This rule does not apply to members of the armed forces.

ry

2 Travel, meals, and lodging expenses in moving from former to new residence . . . . . . .
3 Pre-move travel, meals, and lodging expenses in searching Y 7
for a new residence after getting your job. . . . . |__3. _
4 Temporary living expenses in new location or area during
any 30 consecutive days after getting your job. . . . 4 _
5 Total. Add lines3and4. .. 2... _| __
6 Enter the smaller of line 5 or $1,500 ($750 if married filing a separate return
and you lived with your spouse who also started work during the tax year). . 6

N

8 Expenses for: (Check only one box)

(a) () buying a new residence; or,

(b) ([] if renting, getting a lease on anewresidence. . . . . 2. 1. 8
9 Total. Add lines6,7,and8. . . 2... tone coe 9

10

Transportation expenses in moving household goods and personal effects .

Expenses for: (Check only one box)
(a) [7] sale or exchange of your former residence; or,

(b) [] if renting, settlement of unexpired lease on your former residence. . 7

Note: Amounts on lines 7(a) and 8(a) not deducted because of the $3,000 (or $1,500) limit on mov-
ing expenses may generally be used either to decrease the gain on the sale of your residence,
or to increase the basis of your new residence.

Enter the smaller of line 9 or $3,000 ($1,500 if married, filing a separate return, and you lived with
your spouse who also started work during the tax year). . . . . 1 1. ee ee ee

w |

11 Total moving expenses. Add lines 1,2,and10. . . . . rs =
12 Reimbursements and allowances received for this move. Do not report amounts included on your

Form W-2- ee LAL —
13 If line 12 is less than line 11, enter the difference here and on Form 1040, line23. . . . 1. . —
14 If line 12 is larger than line 11, enter the difference here and on Form 1040, line 21, as “Excess moving

reimbursement”... se ee eb

A. Who May Deduct Moving Expenses.—
If you moved your residence because of a
change in the location of your job, you may
be able to deduct your moving expenses.
You may qualify for a deduction whether
you are self-employed or an employee, But
you must meet certain tests of distance
and time, explained below. If you need
more information, please get Publication
521, Moving Expenses.

(1) Distance Test.—Your new job loca-
tion must be at least 35 miles farther from
your former residence than your old job
location was. For example, if your former
job was 3 miles from your former resi-
dence, your new job must be at least 38

General Instructions

miles from that residence. If you did not
have an old job location, your new job
must be at least 35 miles from your former
residence. (The distance between the two
points is the shortest of the commonly
traveled routes between the points.)

(2) Time Test.—If you are an employee,
you must work full time for at least 39
weeks during the 12 months right after
you move. If you are self-employed, you
must work for at least 39 weeks during the
first 12 months and a total of 78 weeks
during the 24 months right after you move.

You may deduct your moving expenses
for 1979 even if you have not met the

“time” test before your 1979 return is due.
You may do this if you expect to meet the
39-week test by the end of 1980 or the 78-
week test by the end of 1981. If you have
not met the test by then, you will have to
do one of the following:

@ Amend your 1979 tax return on which
you deducted moving expenses. To do
this, use Form 1040X, Amended U.S.
Individual Income Tax Return.

@ Report as income on your tax return
for the year you cannot meet the test
the amount you deducted on your
1979 return.

(Continued on back)

283-161-1

Form 3903 (1979)


'f you do not deduct your moving ex-
penses on your 1979 return, and you later
meet the time test, you may file an amend-
ed return for 1979, taking the deduction. To
do this, use Form 1040X.

B. Exceptions to the Distance and Time
Tests.—If you are in the armed forces, you
do not have to meet the distance and time
tests if the move is due to a permanent
change of station. In figuring your moving
expenses, do not deduct any moving ex-
penses for moving services that were fur-
nished by the military or that were reim-
bursed to you and that you did not include
in income. However, you may deduct any
unreimbursed moving expenses you have
subject to the dollar limits. Also, treat each
move for yourself or your spouse or your
dependents to or from separate locations
asa single move.

You do not have to meet the time test
if your job ends because of death, disabil-
ity, transfer for the employer's benefit, or
layoff or other discharge besides willful
misconduct.

C. Moving Expenses in General—You
can deduct most but not all of your moving
expenses.

Examples of expenses you CAN deduct are:
© Travel, meal, and lodging expenses
during the move to the new residence.

@ Temporary living expenses in the new

location.

@ Pre-move travel expenses.

Examples of expenses you CANNOT de-
duct are:
Loss on the sale of your house.
Mortgage penalties.

@ Cost of refitting

draperies.

© Losses on quitting club memberships.

The line-by-line instructions below ex-
plain how to figure the expenses you can
deduct. The items listed must be the rea-
sonable amounts you spent for the move.
The expenses apply only to your family and
dependent household members. They do
not apply to employees such as a servant,
governess, or nurse.

Line-by-Line Instructions

To see whether you meet the “distance”’
test, fill in the number of miles for ques-
tions (a) and (b) at the top of the form. If
you meet the test in (c), continue with the
items that follow.

Line 1, Household Goods and Personal
Effects.—In figuring this amount, include
the actual cost of packing, crating, moving,
storing in transit, and insuring your house-
hold goods and personal effects.

Line 2, Travel Expenses.—Figure in this
amount the costs of travel from your old
residence to your new residence. These in-
clude transportation, meals, and lodging
on the way, including costs for the day you
arrive. You may take this travel deduction
for only one trip. However, all the mem-
bers of your household do not have to
travel together and at the same time. If
you use your own car, you may figure the
expenses in either of two ways:

(a) Actual out-of-pocket expenses for
gasoline, oil, and repairs. (Keep records
to verify the amounts.)

(b) At the rate of 8 cents a mile. (Attach
a sheet of paper showing your figures to
verify mileage.)

Line 3, Pre-move Expenses.—Include in
this amount the costs of travel before you
move in order to look for a new residence.
You may deduct the costs only if the fol-
lowing apply:

(a) If you began the house-hunting trip
after you got the job;

(b) And if you returned to your old resi-
dence after looking for a new one;

carpets and

(c) And if you traveled to the general
location of the new work place primarily to
look for a new residence.

Your deduction for pre-move travel is not
limited to any number of trips by you or
your household members. Your house-
hunting does not have to be successful to
qualify for this deduction. If you used your
own car, figure transportation costs the
same way as in the instructions for line 2.
If you are self-employed, you can deduct
these house-hunting costs only if you had
already made substantial arrangements to
begin work in the new location.

Line 4, Temporary Living Expenses.—In-
clude in this amount the costs of meals
and lodging while occupying temporary
quarters in the area of your new place of
work. You may include these costs for any
period of 30 consecutive days after you get
the job. If you are self-employed, you can
count these temporary living expenses only
if you had already made substantial ar-
rangements to begin work in the new loca-
tion.
Line 5, Total.—Add the amounts in lines
3 and 4.

Line 6.—Enter either the amount on line
5 or $1,500, whichever is smaller. (If you
are married filing a separate return and you
lived with your spouse who also started
work during the tax year, enter either the
amount on line 5 or $750, whichever is
smaller.)

Lines 7 and 8, Expenses for the Sale,
Purchase, or Lease of a Residence.—You
may include in these amounts some costs
when you sell or buy a residence and when
you settle or get a lease. Examples are:
Sales commissions.

Advertising costs.

Attorney's fees.

Title and escrow fees.

State transfer taxes.

Costs to settle an unexpired lease or
buy a new lease.

Examples of expenses you CANNOT i
clude are:

Costs to improve the residence to

help it sell.

© Charges for payment or prepayment

of interest.

© Payments or prepayments of rent.

Check the appropriate box (a) or (b) for
line 7 and for line 8 when you enter the
amounts for these two lines.

Line 9, Total.—Add lines 6, 7, and 8.

Line 10.—Enter either the amount on
line 9 or $3,000, whichever is smaller. (If
you are married filing a separate return
and you lived with your spouse who also
started working during the tax year, enter
either the amount on line 9 or $1,500,
whichever is smaller.)

Line 11, Total Moving Expenses.—Add
lines 1, 2, and 10.

Line 12, Reimbursements and Allow-
ances.—include all reimbursements and
allowances for moving expenses in income.
In general, Form W-2 includes such reim-
bursements and allowances. However,
check with your employer if you are in
doubt. Your employer is required to give
you a statement showing a detailed break-
down of reimbursements or payments of
moving expenses. Form 4782, Employee
Moving Expense Information, may be used
for this purpose. Use line 12 for reporting
reimbursements and allowances if they are
not included elsewhere on Form 1040 or
related schedules.

Line 13.—If line 12 is less than line 11,
subtract line 12 from line 11. Enter the re-
‘sult here and on Form 1049, line 23.

‘Ye US, GOVERNMENT PRINTING OFFICE : 197°-O-283-161

Line 14.—If line 12 is more than line 11,
subtract line 11 from line 12. Enter the
result here and on Form 1040, line 21.
Next to the amount, write “Excess moving
reimbursement."”

Double Benefits.—You cannot take dou-
ble benefits. For example, you cannot use
the moving expense on line 7 that became
Part of your moving expense deduction
to lower the amount of gain on the sale of
your old residence. You also cannot use
the moving expense on line 8 that became
part of your moving expense deduction
to add to the cost of your new residence.
(See Form 2119, Sale or Exchange of Per-
sonal Residence, to figure the gain to re-
Port on the old residence and the adjusted
cost of the new one.)

Dollar Limitations.—Lines 1 and 2 (costs
of moving household goods and costs of
travel to your new residence) are not lim-
ited to any amount. All the other costs
(lines 3, 4, 7, and 8) together cannot be
more than $3,000. In addition, line 3
(house-hunting trip costs) and line 4 (tem-
porary lodging costs) together cannot be
more than $1,500.

There are some special cases:

(a) Both you and your spouse began
work at new work places and shared the
same new residence: You must consider
this as one move rather than two if you
shared the same new residence at the end
of 1979. If you file separate returns, costs
for lines 3, 4, 7, and 8 are limited to $1,500
per move for each of you. Costs of house-
hunting and temporary living expenses
(ines 3 and 4) are limited to $750 for
each of you.

(b) Both you and your spouse began
work at new work places but you moved to
separate new residences: Report moving
expenses separately. If you file separate
returns, each of you limited to $3,000
for lines 3, 4, 7, and 8; and to $1,500 for
lines 3 and 4. If you file a joint return, the
limits are $6,000 for lines 3, 4, 7, and 8;
and $3,000 for lines 3 and 4.

Qualified Retired People or Survivors
Living Outside the United States.—There
are special rules for moving expenses to a
U.S. residence for qualified retired people
or survivors. If you meet the requirements
below, treat your moving expenses as if
you incurred them because of a move to a
new principal work place located in the
United States.

Use this form_instead of Form 3903F,
Foreign Moving Expense Adjustment. You
do not have to meet the time test, dis-
cussed in instruction A, but you are sub-
ject to the dollar limitations and distance
test that apply to moves within the United
States (contained in this form).

Retired People.—You may be able to
claim moving expenses if both your former
principal work place and your former resi-
dence were outside the United States. This
deduction is for moving expenses to a new
U.S. residence in connection with your ac-
tual retirement.

Survivors.—If you are the spouse or de-
pendent of a deceased person whose prin-
cipal work place at the time of death was
outside the United States, you may be able
to claim some moving expenses. You must
meet the following requirements:

© The moving expenses are for a move

which begins within 6 months after
the death of the decedent.
© The move is to a U.S. residence from
a former residence outside the United
States.

@ At the time of death, the decedent
and you shared your former resi-
dence.

283-1611