Julian and Deloris Move During the Current Year from Their

question 35

Multiple Choice

Julian and Deloris move during the current year from their home in Houston to Santa Fe. Julian was a rocket scientist with NASA in Houston and has accepted a new job with the Los Alamos research lab near Santa Fe. Moving expenses and reimbursement information are presented below. • Direct costs of moving themselves, furnishings and other personal belongings to Santa Fe total $8,000.
• A house-hunting trip before their move to Santa Fe resulted in the total costs of $2,500.
• Julian and Deloris incurred commissions and legal costs in the amount of $12,000 in conjunction with the sale of their Houston residence.
• Los Alamos research laboratories reimbursed Julian and Deloris for $5,000 of their moving costs. What is their Moving Expense deduction?

• A) $17,500 deduction from AGI.
• B) $8,000 deduction for AGI.
• C) $10,500 deduction from AGI.
• D) $3,000 deduction for AGI.
• E) $22,500 decution from AGI.

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Definitions:

Contract

A contract that is enforceable by law, made between two or more entities, detailing their responsibilities and entitlements.

Security Interests

A legal claim or lien on assets, granted to secure the performance of an obligation or the payment of a debt.

Agricultural Liens

Security interests in farm products, such as crops or livestock, which secure payment or performance of an obligation.

Unperfected

Refers to a security interest in property that has not been properly registered or publicized, and therefore may not have priority over other claims.