Essay on Tax Case

2017 Words Apr 23rd, 2016 9 Pages
TO: File
RE: Helen Hanks

Helen Hanks, who lives in San Francisco, California, has just been promoted to manager of the divisional office. However, the divisional office is located in Portland, Oregon. Helen’s significant other, Tom Hunt, will be moving with her to Portland. Helen’s children from a previous marriage will also be joining her in Portland. The children have been living with their father in Spain for the past year.
Helen easily sells the San Francisco house in which she and Tom live. Helen is the sole owner of the house. However, she has a harder time finding the right home in Portland. Helen has to make several trips to Portland before buying a house under construction. It will not be available for
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These expenses include the cost of transportation, meals, and lodging while traveling to search for a residence at her new employment location.

Issue and Conclusion 3
Can Helen deduct the expenses of moving her car to her new place of residence?

Yes, Helen can deduct the expense of moving her car

Analysis 3
Under Reg § 1.217-2(b) 3 Helen is allowed to deduct the expense of moving her car to her new place of residence because they are reasonable moving expenses. More specifically, Rev. Rul. 65-309, 1965-2 C.B. 77 states, “the term moving expenses includes the reasonable expenses of moving an employee's personal automobile for use by the employee and members of his household at his new place of residence”.

Issue and Conclusion 4
Can Helen deduct the cost of storing her household goods from the former residence?

Yes, Helen can deduct the cost of storing her household goods if they are stored for no more than 30 days.

Analysis 4
Helen’s expenses for the storage of her household items in San Francisco and in Portland should be deductible under Reg §1.217-2. Reg §1.217-2 states: “Expenses of moving household goods and personal effects include expenses of transporting such goods and effects from the taxpayer’s former residence to his new residence, and expenses of packing, crating, and in-transit storage and insurance for such good and effects.” The regulation further explains

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