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17, 2002, respondent issued a notice of deficiency to petitioners
for 1999 determining an income tax deficiency of $795 after
denying the claimed moving expense deduction. On June 17, 2002,
petitioners timely filed a petition with the Court disputing
respondent’s determination.
OPINION
Ordinarily, moving expenses are considered nondeductible
family and living expenses. See Jorman v. Commissioner, T.C.
Memo. 1996-297. However, a taxpayer may deduct moving expenses
incurred during the taxable year in connection with the
taxpayer’s commencement of work if he meets the requirements of
section 217(a).2
The taxable year in issue is 1999. Petitioners moved to
Chicago, Illinois, in 1998, but claimed a deduction of $5,340 for
moving expenses in 1999. Petitioners provided no testimony or
evidence to prove they paid or incurred any moving expenses in
1999, nor did they offer a basis on which the Court could make an
estimate under Cohan v. Commissioner, 39 F.2d 540, 544 (2d Cir.
2 SEC. 217. MOVING EXPENSES
(a) Deduction Allowed.–-There shall be allowed as a
deduction moving expenses paid or incurred during the
taxable year in connection with the commencement of work by
the taxpayer as an employee or as a self-employed individual
at a new principal place of work.
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Last modified: May 25, 2011