Moving Expenses
Response to the following problem:
Trey Wilson accepted a new job in Baltimore, Maryland, which is 787 miles from his old home. In April he flew out to Baltimore to start his new job. His wife, Veronica remained at their old home so that the children could finish out the school year. In July, the Wilsons paid a moving company $6,200 to move their belongings to Baltimore. Veronica then drove the family out to their new home. Trey's airfare to Baltimore was $450. Veronica paid $151 for gas, $260 for lodging, and $110 for meals while en route to Baltimore. Trey's employer reimbursed him $5,000 for the cost of the moving company.
a. Compute the Wilsons' moving expense deduction.
b. Where is this amount reported on their return?