Les B. Martin and Millie A. Martin - Page 10

          there are circumstances which prevented the taxpayer from incurring         
          the expenses of moving within the 1-year period.  Sec. 1.217-               
          2(a)(3), Income Tax Regs.  Costs of storage are not deductible              
          unless incurred in transit, which is defined as within any                  
          consecutive 30-day period after the goods are moved from the                
          taxpayer's former residence and before delivery at the new                  
          residence.  Sec. 1.217-2(b)(3), Income Tax Regs.                            
               Petitioners moved from Cleveland to Kalamazoo in early 1987,           
          when Mr. Martin began a new job.  Petitioners claim a $3,273                
          deduction for moving expenses that were incurred in 1989.  We do            
          not believe that these expenses were reasonably proximate in time           
          to the commencement of Mr. Martin's new employment in Kalamazoo.            
          Petitioners claim that there were circumstances beyond their                
          control which dictated the amount of time for the move:  (1) The            
          local real estate market was very tight and no houses were                  
          available, and (2) business related job activities required all of          
          Mr. Martin's time.  We have considered these arguments and reject           
          them.  There was no showing that a suitable house in the Kalamazoo          
          area could not have been acquired within a 1-year period, and               
          although Mr. Martin's job activities might have required a                  
          substantial portion of his time, there was no showing that Mrs.             
          Martin could not have looked for suitable housing.  Further, the            
          expenses of moving the goods from storage to petitioners' newly             
          refurbished house were not incurred in transit, but rather are              
          storage related expenses.  Therefore, respondent's determination            

Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  Next

Last modified: May 25, 2011