om 3909

Department of the Treasury
Internal Revenue Service

Moving Expense Adjustment

& Attach to Form 1040.

| 1973

Name(s) as shown on Form 1040

Social security number

(a) What is the distance from your former residence to your
.- miles

new business location? _ ...

(b) What is the distance from your former
your former business location? ...

residence to
miles

Note: The moving expense deduction is not allowed unless distance (a) is 50 or more miles farther than distance (b). (See instruction A.)

1 Transportation expenses to move household goods and personal effects. . .

2 Travel, meals, and lodging expenses to move from former residence to new place

3 Pre-move travel, meals, and lodging expenses to search for a
new residence after obtaining employment . . . . . .
4 Temporary living expenses in new location (or area) during any
period of 30 consecutive days after obtaining employment .

a

Total (Add lines 3 and 4.) .

a

of residence .

Enter lesser of the amount on line 5 or $1,000 ($500 if married, filing a separate

return, and you resided with your spouse who also started work during the tax-

able year) . 2 2. 1 we
Expenses incident to: (Check one.)

N

(a) © sale or exchange of taxpayer's former residence; or,
(b) 0 if nonowner, settlement of an unexpired lease on former residence . .

Expenses incident to: (Check one.)

(a) 0 purchase of a new residence; or,
(b) C0 if renting, acquiring a new lease

©

Total (Add lines 6, 7, and 8.) .

Note: If you use expenses of selling your old residence (line 7(a)) or purchasing a new residence
(line 8(a)) as part of your moving expense and line 9 exceeds $2,500 ($1,250 if married, filing
a separate return, and you resided with your spouse who also started to work during the tax-
able year), you may apply the excess as a reduction in the amount shown on line 7(a) and/or
8(a) and consider such reduction as a decrease in the realized gain on the sale of your resi-

dence or as an increase in the basis of your new residence or both.

10

11
12
(See instruction L.). 2.

13

14

Total moving expenses (Add lines 1, 2, and 10)... ..
Reimbursements and allowances received for this move (othi

Form 1040, line 37, as ‘‘Excess moving reimbursement” . . . . . .

Enter lesser of the amount on line 9 or $2,500 ($1,250 if married, filing a separate return and you re-
sided with your spouse who also started to work during the taxable year). (See instruction C(2).)

er than amounts included on Form W—2)

If line 12 is less than line 11, enter the excess expenses here and on line 40, Form 1040. .

If line 12 is larger than line 11, enter the excess reimbursements and allowances here and on

‘A. Who May Deduct Moving Ex-
penses.—An employee or self-employed
individual may deduct reasonable mov-
ing expenses paid or incurred during the
taxable year in connection with his move
to a new principal place of work.

The deduction is allowed only if (a)
the change in job locations has added at
least 50 miles to the distance to work
from the old residence, or (b) if there
was no former principal place of work,

Instructions

the new principal place of work is at least
50 miles from the former residence. The
distance between two points shall be
the shortest of the more commonly trav-
eled routes between the two points.

Also, the deduction is allowed only if
either (a) during the 12-month period
immediately following arrival in the gen-
eral location of the new principal place
of work the taxpayer is a full-time em-
ployee during at least 39 weeks, or (b)

during the 24-month period immediately
following arrival in the general location
of the new principal place of work, the
taxpayer is a full-time employee or is
self-employed on a full-time basis during
at least 78 weeks of which not less than
39 weeks are during the 12-month period
following arrival.

B. The 39 Week/78 Week Test—The
39 week/78 week test referred to in In-
struction A may be disregarded if

(Continued on back)

36—82347-1



terminated because of death, disability,
involuntary separation from employment
(other than for willful misconduct) or
transfer for the benefit of an employer.

If the 39 week/78 week test has not
been satisfied before the time for filing
the return for the taxable year in which
moving expenses were paid or incurred,
but will later be satisfied, moving ex-
penses may still be deducted in the year
when paid or incurred.

If, however, the 39 week/78 week test
is not satisfied at the close of a later
taxable year, then an amount equal
to the deduction for moving expenses
taken in the prior year shall be included
in income for the first such later taxable
year; unless, an amended return is filed
for the year in which the deduction was
claimed, and is eliminated.

©. Deductible Moving Expenses.—

(1) Expenses Not Subject to a Dollar
Limitation, lines 1 and 2.—These types
of expenses are as follows:

(a) Expenses for the movement of
household goods and personal effects
from the former residence to the new
residence, and

(b) Traveling expenses _ (including
meals and lodging) from the former resi-
dence to the new place of residence (not
to be confused with other traveling ex-
penses, explained below).

(2) Expenses Subject to a Dollar Limi-
tation, lines 3, 4, 7, and 8.—These types
of expenses are as follows:

(a) Traveling expenses (including
meals and lodging) after obtaining em-
ployment, from the former residence to
the general location of the new principal
place of work and return, for the primary
purpose of finding a new residence,

(b) Meals and lodging expenses while
occupying temporary quarters in the gen-
eral location of the new principal place of
work during any period of 30 consecutive
days after obtaining employment, and

(c) Qualified expenses attributable to
the sale, purchase, or lease of a residence.

These C(2) expenses are subject to an
overall per move limitation of $2,500, of
which the expenses described in C(2)(a)
and C(2)(b) cannot exceed $1,000.

In the case of a taxpayer and his
spouse who both commence work at
new principal places of work during the
taxable year, the two commencements
will be considered a single commence-
ment of work, for purposes of assigning
the dollar limitations in C(2), if as of the
close of the taxable year, they have
shared the same new residence. If they
file separate returns, these types of ex-
penses are subject to an overall per move
limitation of $1,250, of which the
expenses described in C(2)(a) and
C(2)(b) cannot exceed $500. However, if
the taxpayer and his spouse have not
shared the same new residence nor
made specific plans to share the same
new residence within a determinable
time, the separate commencements of
work will be considered separately. If they
file separate returns, these types of ex-
Penses are subject to an overall per move
limitation of $2,500, of which the ex-
penses described in C(2)(a) and C(2)(b)

cannot exceed $1,000. If they file a joint
return, these types of expenses are sub-
ject to an overall per move limitation of
$5,000, of which the expense described in
C(2)(a) and C(2)(b) cannot exceed
$2,000.

D. “Reasonableness” of Moving Ex-
penses.—The term “moving expenses”
includes only those expenses that are
reasonable under the circumstances of
the particular move. Expenses related to
members of the taxpayer's household
include only those expenses for mem-
bers who have both the taxpayer's former
residence and his new residence as their
principal place of abode. Members of
the taxpayer’s household generally do
not include, for example, a servant,
governess, chauffeur, nurse, valet, etc.

E. Household Goods and Personal Ef-
fects.—Expenses of moving household
goods and personal effects from the tax-
payer’s former residence to his new resi-
dence include the actual cost of trans-
portation or hauling, packing and crating,
in-transit storage, and insurance.

F. Traveling Expenses from the Tax-
payer’s Former Residence to His New
Residence.—These include the cost of
transportation, meals, and lodging (in-
cluding costs for the date of arrival). The
deduction for traveling expenses from the
taxpayer’s former residence to his new
residence is allowable for only one tri
However, it is not necessary that the tax-
payer and all members of his household
travel together or at the same time. To
compute the cost of transportation in
cases where the taxpayer uses his own
car, see Instruction G below.

G. Traveling Expenses, after Obtain-
ing Employment, from the Former Resi-
dence to the General Location of the
New Principal Place of Work, and Return,
for the Principal Purpose of Searching
for a New Residence.—Traveling ex-
penses are deductible only if (1) the trip
is begun after the taxpayer has obtained
employment in the general location of
the new principal place of work; (2) the
taxpayer returns to his former residence
after searching for a new residence in
the general location of the new principal
place of work; and (3) the taxpayer's
principal purpose in traveling to the gen-
eral location of the new principal place
of work is to search for a new residence.

The deduction for expenses of traveling
for the principal purpose of looking for
a new residence is not limited to any
number of trips by the taxpayer and by
members of his household. Moreover,
a trip need not result in acquisition of a
lease of property or purchase of prop-
erty for it to be deductible.

If a taxpayer uses his own automobile
for this transportation, he can compute
the transportation expenses in either of
two ways: (1) Actual out-of-pocket ex-
penses. For example, gasoline, oil, re-
pairs, etc. Or (2) at a rate of six cents
a mile, If out-of-pocket expenses are
claimed, an adequate record must be kept
to verify amounts. If the optional method
of six cents a mile is used, attach a
schedule verifying the mileage.

4x US. GOVERNMENT PRINTING OFFICE: 1873-0-500-138

H. Expenses of Meals and Lodging
while Occupying Temporary Quarters.—
These are deductible for any 30 consecu-
tive days after the taxpayer has obtained
employment in the general location of
the new principal place of work.

I. Qualified Expenses Attributable to
the Sale, Purchase or Lease of a Re:
dence.—This term means only those rea:
sonable expenses (such as, sales com-
missions, advertising expenses, attorney
and legal fees, title fees, escrow fees, and
State transfer taxes) incident to (a) the
sale or exchange of the former resi-
dence (not including expenses for work
performed on the residence to assist in its
sale) which would be taken into account
in determining the amount realized on the
sale or exchange; (b) the purchase of a
new residence which otherwise would be
included in (i) the adjusted basis of the
new residence, or (ii) the cost of the loan
(but not including payments or prepay-
ments of interest); (c) the settlement of
an unexpired lease on property used as a
former residence; or (d) the acquisition of
a lease on property which will become
the new residence (excluding payments
or prepayments of rent).

J. Nondeductible Expenses.—Moving
expenses do not include, for example, any
loss incurred on the sale, exchange, or
other disposition of property, mortgage
penalties, cost of refitting rugs or drap-
eries, losses due to the disposal of mem-
berships in clubs, tuition, and similar
items.

K. Self-employed Individuals.—A self-
employed individual is defined as one
who performs personal services as (a)
the owner of the entire interest in an un-
incorporated trade or business, or (b) a
partner in a partnership carrying on a
trade or business.

For expenses to be deducted on lines
3 and 4 by a self-employed person, the
condition of having obtained employment
is met when substantial arrangements
have been made to commence work.

L. Reimbursements and Allowances.—
All reimbursements and allowances for
moving expenses must be included in in-
come. In general, an employee will find
such reimbursements and allowances in-
cluded in his Form W-2. However, if
there is doubt, he should check with his
employer. Line 12 is provided for the re-
porting of reimbursements and allow-
ances if such items are not included else-
where on Form 1040 or related schedules.

M. No Double Benefits.—The amount
realized on the sale of your old residence
shall not be reduced by any expenses
which become part of your moving ex-
pense deduction on line 7, and the basis
of your new residence shall not be in-
creased by the amount of any expenses
which become part of your moving ex-
pense deduction on line 8. If such ex-
penses are included in income because
some condition for the allowance of this
deduction has not been met, an appro-
priate adjustment to the selling price
and/or basis may be made.

N. Publication 521.—For additional in-
formation you may obtain Publication
521, Tax Information on Moving Ex-
Penses, at an Internal Revenue Office.

16—82847-1