-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 determinationPage: 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