§217 — Moving expenses
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Statute Text — 26 U.S.C. §217
There shall be allowed as a deduction moving expenses paid or incurred during the taxable year in connection with the commencement of work by the taxpayer as an employee or as a self-employed individual at a new principal place of work.
For purposes of this section, the term “moving expenses” means only the reasonable expenses—
of moving household goods and personal effects from the former residence to the new residence, and
of traveling (including lodging) from the former residence to the new place of residence.
Such term shall not include any expenses for meals.
In the case of any individual other than the taxpayer, expenses referred to in paragraph (1) shall be taken into account only if such individual has both the former residence and the new residence as his principal place of abode and is a member of the taxpayer’s household.
No deduction shall be allowed under this section unless—
the taxpayer’s new principal place of work—
is at least 50 miles farther from his former residence than was his former principal place of work, or
if he had no former principal place of work, is at least 50 miles from his former residence, and
either—
during the 12-month period immediately following his arrival in the general location of his new principal place of work, the taxpayer is a full-time employee, in such general location, during at least 39 weeks, or
during the 24-month period immediately following his arrival in the general location of his new principal place of work, the taxpayer is a full-time employee or performs services as a self-employed individual on a full-time basis, in such general location, during at least 78 weeks, of which not less than 39 weeks are during the 12-month period referred to in subparagraph (A).
For purposes of paragraph (1), the distance between two points shall be the shortest of the more commonly traveled routes between such two points.
The condition of subsection (c)(2) shall not apply if the taxpayer is unable to satisfy such condition by reason of—
death or disability, or
involuntary separation (other than for willful misconduct) from the service of, or transfer for the benefit of, an employer after obtaining full-time employment in which the taxpayer could reasonably have been expected to satisfy such condition.
If a taxpayer has not satisfied the condition of subsection (c)(2) before the time prescribed by law (including extensions thereof) for filing the return for the taxable year during which he paid or incurred moving expenses which would otherwise be deductible under this section, but may still satisfy such condition, then such expenses may (at the election of the taxpayer) be deducted for such taxable year notwithstanding subsection (c)(2).
If—
for any taxable year moving expenses have been deducted in accordance with the rule provided in paragraph (2), and
the condition of subsection (c)(2) cannot be satisfied at the close of a subsequent taxable year,
then an amount equal to the expenses which were so deducted shall be included in gross income for the first such subsequent taxable year.
For purposes of this section, the term “self-employed individual” means an individual who performs personal services—
as the owner of the entire interest in an unincorporated trade or business, or
as a partner in a partnership carrying on a trade or business.
In the case of a member of the Armed Forces of the United States on active duty who moves pursuant to a military order and incident to a permanent change of station—
the limitations under subsection (c) shall not apply;
any moving and storage expenses which are furnished in kind (or for which reimbursement or an allowance is provided, but only to the extent of the expenses paid or incurred) to such member, his spouse, or his dependents, shall not be includible in gross income, and no reporting with respect to such expenses shall be required by the Secretary of Defense or the Secretary of Transportation, as the case may be; and
if moving and storage expenses are furnished in kind (or if reimbursement or an allowance for such expenses is provided) to such member’s spouse and his dependents with regard to moving to a location other than the one to which such member moves (or from a location other than the one from which such member moves), this section shall apply with respect to the moving expenses of his spouse and dependents—
as if his spouse commenced work as an employee at a new principal place of work at such location; and
without regard to the limitations under subsection (c).
In the case of a foreign move, for purposes of this section, the moving expenses described in subsection (b)(1)(A) include the reasonable expenses—
of moving household goods and personal effects to and from storage, and
of storing such goods and effects for part or all of the period during which the new place of work continues to be the taxpayer’s principal place of work.
For purposes of this subsection, the term “foreign move” means the commencement of work by the taxpayer at a new principal place of work located outside the United States.
For purposes of this subsection and subsection (i), the term “United States” includes the possessions of the United States.
In the case of any qualified retiree moving expenses or qualified survivor moving expenses—
this section (other than subsection (h)) shall be applied with respect to such expenses as if they were incurred in connection with the commencement of work by the taxpayer as an employee at a new principal place of work located within the United States, and
the limitations of subsection (c)(2) shall not apply.
For purposes of paragraph (1), the term “qualified retiree moving expenses” means any moving expenses—
which are incurred by an individual whose former principal place of work and former residence were outside the United States, and
which are incurred for a move to a new residence in the United States in connection with the bona fide retirement of the individual.
For purposes of paragraph (1), the term “qualified survivor moving expenses” means moving expenses—
which are paid or incurred by the spouse or any dependent of any decedent who (as of the time of his death) had a principal place of work outside the United States, and
which are incurred for a move which begins within 6 months after the death of such decedent and which is to a residence in the United States from a former residence outside the United States which (as of the time of the decedent’s death) was the residence of such decedent and the individual paying or incurring the expense.
The Secretary shall prescribe such regulations as may be necessary to carry out the purposes of this section.
Except in the case of an individual to whom subsection (g) applies, this section shall not apply to any taxable year beginning after December 31, 2017.
An employee or new appointee of the intelligence community (as defined in section 3 of the National Security Act of 1947 (50 U.S.C. 3003)) (other than a member of the Armed Forces of the United States) who moves pursuant to a change in assignment which requires relocation shall be treated for purposes of this section in the same manner as an individual to whom subsection (g) applies.
Treasury Regulations
- Treas. Reg. §Treas. Reg. §1.217-1 Deduction for moving expenses paid or incurred in taxable years beginning before January 1, 1970
- Treas. Reg. §Treas. Reg. §1.217-1(a) Allowance of deduction—(1) In general.
- Treas. Reg. §Treas. Reg. §1.217-1(b) Definition of moving expenses—(1) In general.
- Treas. Reg. §Treas. Reg. §1.217-1(c) Conditions for allowance—(1) In general.
- Treas. Reg. §Treas. Reg. §1.217-1(d) Rules for application of section 217(c)(2)—(1) Inapplicability of 39-week test to reimbursed expenses.
- Treas. Reg. §Treas. Reg. §1.217-1(e) Disallowance of deduction with respect to reimbursements not included in gross income.
- Treas. Reg. §Treas. Reg. §1.217-1(i) The 12-month period and the 39-week period set forth in section 217(c)(2) are measured from the date of the taxpayer's arrival in the general location of his new principal place of work.
- Treas. Reg. §Treas. Reg. §1.217-1(v) §1.217-1(v)
- Treas. Reg. §Treas. Reg. §1.217-2 Deduction for moving expenses paid or incurred in taxable years beginning after December 31, 1969
- Treas. Reg. §Treas. Reg. §1.217-2(a) §1.217-2(a)
- Treas. Reg. §Treas. Reg. §1.217-2(b) §1.217-2(b)
- Treas. Reg. §Treas. Reg. §1.217-2(c) §1.217-2(c)
- Treas. Reg. §Treas. Reg. §1.217-2(d) The date the taxpayer was informed by his employer of his transfer to the new principal place of work.
- Treas. Reg. §Treas. Reg. §1.217-2(e) Denial of double benefit—(1) In general.
- Treas. Reg. §Treas. Reg. §1.217-2(f) Rules for self-employed individuals—(1) Definition.
- Treas. Reg. §Treas. Reg. §1.217-2(g) Rules for members of the Armed Forces of the United States—(1) In general.
- Treas. Reg. §Treas. Reg. §1.217-2(h) Special rules for foreign moves—(1) Increase in limitations.
- Treas. Reg. §Treas. Reg. §1.217-2(i) Allowance of deductions in case of retirees or decedents who were working abroad—(1) In general.
- Treas. Reg. §Treas. Reg. §1.217-2(j) Effective date—(1) In general.
- Treas. Reg. §Treas. Reg. §1.217-2(v) Where taxpayers file a joint return, either spouse may satisfy the minimum period of employment condition.
70 Citing Cases
As such, we need not decide whether the value of the box that petitioner claims was lost by the moving company is a deductible moving expense for purposes of section 217.
Because we hold that the expenses in question are not deductible for other reasons, we need not resolve whether Palmer's wife had a "principal place ofabode" in Palmer's old residence ofWalker.
- 7 - In summary, we hold that petitioner is entitled to a $2,810.54 moving expense deduction under section 217, as follows: Item Amount Transporting personal property $1,632.54 Rental oftrailers 1,000.00 Storage ofpersonal property 178.00 Total moving expense deduction 2,810.54 To reflect the foregoing, Decision will be en
Section 217 provides that a taxpayer is allowed a deduction for "moving expenses paid or incurred during the taxable year in connection with the commencement ofworkby the taxpayer as an employee or as a self-employed individual at a new principal place ofwork." Petitioner did not testify as to why he moved from Minneso
For the reasons that follow, we hold that petitioners have not established that they are entitled to the business expense deductions claimed.
217 (West 1986 & Supp. 2000), provides that “Every contract by which any one is restrained from exercising a lawful profession, trade or business of any kind, otherwise than as provided by Sections 218 and 219 of this title, is to that extent void.” Oklahoma State courts interpret Okla. Stat. Ann. tit. 15, sec. 217 to prohibit only unreasonabl
sale or purchase expenses. Petitioner incurred his moving expenses after December 31, 1993. Accordingly, any expenses for temporary housing, for the sale of his former residence, and for the purchase of a new residence are not deductible pursuant to section 217. Furthermore, section 217 does not allow a deduction for relocation allowances. Section 1.217-2(b)(3), Income Tax Regs., provides: Expenses of moving household goods and personal effects include expenses of transporting such goods and eff
at petitioner should not be allowed to deduct these costs because he did not satisfy the time test. Respondent also asserts that petitioner has not substantiated his costs and that he included the costs of meals, which are specifically disallowed by section 217. We agree. At all relevant times, petitioner was working as an independent contractor for PIP or RGU. He provided these services as the owner of the entire interest in an unincorporated trade or business and therefore 13 [*13] qualifies a
Section 217 of the Revenue Act - 18 - of 1918, the text of which was virtually identical to section 233 of the 1928 Act, provided that no deductions or credits would be allowed to nonresident aliens unless they filed “a true and accurate return * * * in the manner prescribed by this title.” Revenue Act of 1918, ch. 18, sec. 217, 40 Stat. at 1069-1
Section 217 Moving Expenses Section 217(a) allows a deduction for "moving expenses paid or incurred during the taxable year in connection with the commencement ofwork by the taxpayer as an employee or as a self-employed individual at a new principal place ofwork." Section 217(b)(1) generally defines "moving expenses" as the reasonable expenses ofmo
hip with DLC is the employment agreement he executed on June 7, 2012. As discussed below, we have considered the entire record (including the disputed exhibit) and conclude that Mr. Anderson was not a full-time employee for the requisite time under sec. 217. Under the circumstances, the admission ofparol evidence is ofno consequence, and we consider respondent's objection moot. -5- compensating him for 56 hours ofwork performed during the two-week period ending July 22, 2012. The parties agree t
~ Moving Expense Deduction and Itemized Deductions If properly substantiated, and subject to certain conditions and limitations, (1) moving expenses are deductible under section 217, (2) unreimbursed employee business expenses are deductible under section 162(a), (3) charitable contributions are deductible under section 170, and (4) home mortgage interest is deductible under section 163(h) (2) (]D).
The issues for determination are: (I) Whether petitioner is entitled to a $5, 000 deduction under section 217 for moving expenses allegedly incurred in 2005;1 (2) whether petitioner is entitled to a $36, 250 deduction under section 165 for a casualty loss allegedly sustained in .
It appears that petitioner might be entitled to a section 217 moving expense deduction for his move from Austin to Colorado in 2002 and/or for his move from Colorado to New Jersey in 2003 .
It appears that petitioner might be entitled to a section 217 moving expense deduction for his move from Austin to Colorado in 2002 and/or for his move from Colorado to New Jersey in 2003 .
Moving Expenses Deduction Under section 217, subject to certain conditions, a taxpayer can deduct moving expenses incurred during a taxable year in connection with the commencement of work by the taxpayer as an employee or as a self-employed individual at a new principal place of work .
Section 217 of the Revenue Act of 1918 a. Overview Ten years before the Revenue Act of 1928, 45 Stat. 791, Congress enacted in section 217 of the Revenue Act of 1918, ch. 18, 40 Stat. 1069, a provision applicable to nonresident aliens. This provision was substantially similar to section 233 of the Revenue Act of 1928, except that section 217 used t
This provision was substantially similar to section 233 of the Revenue Act of 1928, except that section 217 used the words “nonresident alien individual” rather than the words “foreign corporation”.
The issues for decision are: (1) Whether petitioner is entitled to a claimed deduction of $12,449 for moving expenses under section 217, and (2) whether petitioner is liable for the section 6662(a) penalty.
Moving Expenses Section 217 permits a deduction for “moving expenses paid or incurred during the taxable year in connection with the commencement of work by the taxpayer as an employee or as a self- employed individual at a new principal place of work.” The term “moving expenses” does not include any expenses for meals.
vinced that petitioner and his partners and associates discussed business at lunch, that the meeting was a part of their working day, and that this 1 Sec. 212, which applies to nontrade or nonbusiness expenses that are costs of producing income, and sec. 217, which applies to moving expenses, are not at issue in this case. Nor were the expenses incurred while petitioner was traveling away from home. - 5 - time was the most convenient time at which to meet. We are also convinced that the partners
and to Hong Kong, of which $500 is estimated to relate to his move to Los Angeles.9 Respondent disputes whether petitioner has substantiated payment of the claimed expenditures and whether petitioner has met the requirements for deductibility under section 217. Respondent's position regarding the failure to substantiate these expenses is well taken. Other than the bare numbers claimed on the Form 3903F attached to his return, petitioner provided no evidence that would substantiate these amounts
incipal place of work for at least 39 weeks during the 12-month period immediately following his arrival in such location. See sec. 217(c)(2). In his brief, petitioner concedes that he erred in reporting the claimed expenses as moving expenses under section 217. He argues, instead, that the claimed expenses should be deductible as employee business expenses under section 162(a)(2). Petitioner's assertion is not supported by the type of substantiation required under section 274(d). See supra sec.
1057, 1069. Section 217 was reenacted throughout the years.5 When carried forward into the Internal Revenue Code of 1954 as section 874, section 874 was "identical in substance with sections 215 and 216, 1939 Code." H. Rept. 1337, 83d Cong., 2d Sess. A245 (1954). A parallel provision, dealing with foreign corporations, was enacte
Petitioners claim that they have satisfied all of the provisions of section 217, and with the exception of certain PSI records, rely exclusively on petitioner's testimony to support the amount of the deduction claimed.
Moving Expenses Section 217 permits a deduction for moving expenses paid or incurred during the taxable year in connection with the commencement of work by the taxpayer as an employee at a new principal place of work.
Section 217 was reenacted throughout the years. When carried forward into the Internal Revenue Code of 1954 as section 874, section 874 was “identical in substance with sections 215 and 216, 1939 Code.” H. Rept. 1337, 83d Cong., 2d Sess. A245 (1954). A parallel provision, dealing with foreign corporations, was enacted as section 233 of the Revenue
This section [section 217 of the 1921 act] explicitly allocates certain important sources of income to the United States or to foreign countries, as the case may be, and with respect to the remaining income (particularly that derived partly from sources within and partly from sources without the United States) authorizes [in section 217(e)] the Commissioner, wit