Vaughn is an employee of Rolling's, Incorporated and was transferred from its Seattle office to its San
Question:
Vaughn is an employee of Rolling's, Incorporated and was transferred from its Seattle office to its San Jose office. Vaughn incurred $18,000 of moving expenses to relocate household items to San Jose. Which of the following statements is true?
If Rolling's paid a $12,000 moving allowance, Vaughn is allowed a $6,000 itemized deduction for moving expenses.
If Rolling's paid an $18,000 moving allowance, Vaughn must include $18,000 in gross income.
If Rolling's paid a $12,000 moving allowance, Vaughn is allowed a $6,000 above-the line deduction.
Regardless of the amount of any moving allowance paid by Rolling's, Vaughn is allowed an $18,000 itemized deduction for unreimbursed moving expenses.
South Western Federal Taxation 2017 Comprehensive
ISBN: 9781305874169
40th Edition
Authors: William H. Hoffman, David M. Maloney, William A. Raabe, James C. Young