In Order to Meet the Time Test for Qualifying Moving

question 71

Multiple Choice

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

• A) Be a full-time employee for a period of 39 weeks during the 12 months following arrival in the new area.
• B) 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.
• C) Remain employed only in the initial new job for the entire 39 or 78 week period.
• D)Be a full-time employee for a period of 39 weeks during the 12 months following arrival in the new area and 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.The time test is met if the taxpayer is a full-time employee for a period of 39 weeks during the 12 months immediately following arrival in the new area or self-employed 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. There is no requirement that all of the qualifying employment must be done in the initial position.

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Definitions:

Keynes

Refers to John Maynard Keynes, a British economist whose theories on government spending and monetary policy revolutionized economic thought and policy, especially during economic recessions.

Real Exchange Rate

The rate at which a person can trade the goods and services of one country for the goods and services of another.

Price Level

A measure indicating the average price of goods and services in an economy at a given time.

U.S. Residents

Individuals who live in the United States, including citizens, permanent residents, and long-term visitors.