Franklin and Alma lived in Oklahoma City, where Alma was stationed with the Air Force for two years. She received new orders to move to Biloxi, Mississippi. This is a permanent change of station (PCS).
They decided to make a Do It Yourself (DITY) move and save money.
Franklin traveled to Biloxi in August to find a house to buy. He spent $790 on round-trip airfare, hotel and a rental car.
On September 2, 2016, Franklin and Alma packed all their belongings and began driving from Oklahoma City to Biloxi. On the way, they made a side trip to New Orleans. Their trip took a total of four days and three nights instead of the authorized two days and one night.
Their move was estimated to cost $4,500, and the Air Force provided $4,275 in advance.
The Findlays drove their family car a total of 850 miles. The shortest, most direct route from Oklahoma City to Biloxi is 769 miles. They paid a shipping company a total of $3,150 to move their household furnishings to the new location. Their cost for lodging was $89 per night, which is considered a reasonable expense. Franklin and Alma spent $500 on food and $300 on entertainment during the trip.
Franklin and Alma are U.S. citizens and have valid Social Security numbers.
1. How much can Franklin and Alma claim as a qualified moving expense for mileage? $________.
2. How much of their meals and entertainment expenses can Franklin and Alma claim as qualified moving expenses
3. Franklin’s August trip to locate a house is not a qualified moving expense.True or false
4. Franklin and Alma's net financial profit from the move will be reported on a Form W-2. True or false
5. How much can Franklin and Alma claim as qualified lodging expenses?