- 3 - 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.Page: Previous 1 2 3 4 5 Next
Last modified: May 25, 2011