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Moving expenses?


Catherine

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Client moved to CA in '08. Lost a job here, had one lined up there. Got out there, offer was rescinded before he could start. Stayed out there several months, trying to find work, and then moved back here.

Are _any_ of the moving expenses deductible? I could possibly make a case for the first move....

Thoughts?

Catherine

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I think I have to agree with Genein Alabama. He didn't actually report to a job which in my opinion makes the expenses non-deductible. I also agree he needs to see a lawyer especially if he was blind sided with this.

Terry D.

That's what I was thinking. Just wanted to make sure I wasn't missing anything. Thanks!

Catherine

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>>he needs to see a lawyer<<

Like other states, California law has at will employment. That means an employer can hire you or not, for whatever reason or no reason. There is an exception for protected classes, but how easy is it to prove that was the reason? Unless he has the exceedingly rare contract for liquidated damages, the only lawyer who will see him is the one he gives a $5000 retainer to. May I suggest he give that money to charity instead--at least that way he will get some satisfaction.

He obviously doesn't meet the job history requirement for moving expenses. Maybe you can call some of them job search, but that's pushing things so you should only consider it if the deduction is very important and he has excellent records.

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I would think the expenses would not be deductible on taxes unless he had worked at least a day.

It takes a lot longer than one day before you can deduct moving expenses. From form 3903 ...

If you are an employee, you must work full time in the general area of your new workplace for at least 39 weeks during the 12 months right after you move. If you are self-employed, you must work full time in the general area of your new workplace for at least 39 weeks during the first 12 months and a total of at least 78 weeks during the 24 months right after you move.
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  • 4 weeks later...

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