In Order to Meet the Time Test for Qualifying Moving

question 8

Multiple Choice

In order to meet the time test for qualifying moving expenses,a taxpayer must:

• A)Remain employed only in the initial new job for the entire 39 or 78 week period.
• B)Be a full-time employee for a period of 39 weeks during the 12 months following arrival in the new area.
• C)Be a full-time employee for a period of 39 weeks during the 12 months following arrival in the new area or be a self-employed individual for at least 78 weeks during the 24 months immediately following arrival in the new area.At least 39 of the 78 weeks must be during the first 12-month period.
• D)Be a self-employed individual for at least 78 weeks during the 24 months immediately following arrival in the new area.At least 39 of the 78 weeks must be during the first 12-month period.

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Definitions:

Journal Entry

A record in accounting that represents a single transaction and its impact on the financial statements, made up of debits and credits.

Purchase Price

The amount of money paid or agreed to be paid by the buyer to acquire a good or service from the seller.

Treasury Stock

Stock that has been repurchased by the issuing company, reducing the amount of outstanding stock on the open market.

Sales Price

The amount of money charged for a product or service, or the sum received upon the sale of a product or service.