In Terms of Meeting the Distance Test for Purposes of Deducting

question 111

Multiple Choice

In terms of meeting the distance test for purposes of deducting moving expenses, which of the following statements is correct?

• A)The taxpayer's new job location must be at least 50 miles away from the old job.
• B)The taxpayer's new residence must be at least 50 miles away from the new job.
• C)The taxpayer's new residence must be at least 50 miles away from the old residence.
• D)The taxpayer's new job location must be at least 50 miles farther from the old residence than the old residence was to the old job.
• E)None of these.

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Definitions:

Salary Allowances

Compensation or benefits on top of regular salary, often for specific purposes like housing, travel, or meals.

Net Income

The amount of money a company earns after deducting all its expenses, taxes, and costs from its total revenue.

Capital Balances

The amount of money that owners have invested in a company plus any retained earnings or minus any losses.

Net Income

Net Income is the profit of a company after all expenses, taxes, and costs have been subtracted from total revenue.