Moving expense - from house or school?

[Kea]

Client and his wife had lived in Austin. Client went to school in Chicago for about 2 years to get MBA. Austin was still his primary residence and Chicago was temporary location for school. He did not work in Chicago, but did have a short-term job in Austin in 2006. In April 2007 he got divorced and moved some stuff to storage in Houston (he rented a U-Haul). After graduation in June (or May?) he moved to Houston without going back to Austin in between.

He can count U-Haul rental and one month of storage.

He did not move any "stuff" from Chicago to Houston.

But for mileage expense - does he count Chicago to Houston or Austin to Houston?

Thanks

[Terry D EA]

You need to look up the regulations to claim moving expenses. Your client must have moved more than 50 miles from his previous residence because of job relocation or to get another job. Your description doesn't sound like he qualifies for the moving expense deduction.

Terry D.

[Kea]

Thanks Terry,

I knew he qualified so I didn't mention that part. I did check the rules and he is not required to have had a job prior to the move. Persons returning to work are eligible ("distance test is met if the new workplace is at least 50 miles from the former home." Quickfinders page 4-17). Chicago to Houston is over 1000 miles, and Austin to Houston is 150 miles. After graduation he started a job and is still there (and plans to remain there for the foreseeable future.

It seems to me that he would use Austin to Houston since that had been his "permanent residence". But at the specific time he moved, it was from his temporary home in Chicago.

Or, does driving a U-Haul truck for moving the stuff from Austin to Houston count as his one trip?

Thanks.