Which of the Following Situations Will Disqualify a Taxpayer from Taking

question 62

Multiple Choice

Which of the following situations will disqualify a taxpayer from taking a deduction for moving expenses?

• A)Pam moves from Phoenix to Los Angeles to take a new job.She works at the Los Angeles job for 45 weeks before starting a new job in Las Vegas.
• B)Paul moves from Boston to Miami to start a new business selling t-shirts.The business is not successful and Paul returns to Boston after 52 weeks.
• C)Phyllis moves from Seattle to San Francisco to open a coffee bar.She still owns the coffee bar and lives in San Francisco 90 weeks after her move.
• D)Marva moves from Dallas to Washington,DC,in her job as an IRS agent.She is still working at the IRS Washington office after one year.

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Definitions:

Stagflation

A situation in an economy characterized by slow economic growth combined with high unemployment and high inflation.

Unemployment

The situation where individuals who are capable of working and are actively seeking work are unable to find employment.

Inflation

The velocity at which the broad price tags for products and services surge, weakening the power to purchase.

Cyclical Unemployment

Unemployment that results from economic downturns or recessions, reflecting a lack of demand for goods and services.