A taxpayer is stationed at the military base at Ford Ord, California. This base was one of those selected for closure. As a result, taxpayer was transferred to a base in Virginia. The taxpayer received the following reimbursement from the government:
* $10,000 dislocation allowance to help with the move.
* $500 temporary lodging for five days.
* $2,000 reimbursement for two months lease payments before permanent housing was found
Using only the Code, Treasury regulations, revenue rulings, and revenue procedures, determine how much, if any, the taxpayer must recognize in gross income as a result of the reimbursements.