§ 217. Moving expenses
(a)
Deduction allowed
There shall be allowed as a deduction moving expenses paid or incurred during the taxable year in connection with the commencement of work by the taxpayer as an employee or as a self-employed individual at a new principal place of work.
(b)
Definition of moving expenses
(1)
In general
For purposes of this section, the term “moving expenses” means only the reasonable expenses—
(A)
of moving household goods and personal effects from the former residence to the new residence, and
Such term shall not include any expenses for meals.
(2)
Individuals other than taxpayer
In the case of any individual other than the taxpayer, expenses referred to in paragraph (1) shall be taken into account only if such individual has both the former residence and the new residence as his principal place of abode and is a member of the taxpayer’s household.
(c)
Conditions for allowance
No deduction shall be allowed under this section unless—
(1)
the taxpayer’s new principal place of work—
(2)
either—
(A)
during the 12-month period immediately following his arrival in the general location of his new principal place of work, the taxpayer is a full-time employee, in such general location, during at least 39 weeks, or
(B)
during the 24-month period immediately following his arrival in the general location of his new principal place of work, the taxpayer is a full-time employee or performs services as a self-employed individual on a full-time basis, in such general location, during at least 78 weeks, of which not less than 39 weeks are during the 12-month period referred to in subparagraph (A).
For purposes of paragraph (1), the distance between two points shall be the shortest of the more commonly traveled routes between such two points.
(d)
Rules for application of subsection (c)(2)
(1)
The condition of subsection (c)(2) shall not apply if the taxpayer is unable to satisfy such condition by reason of—
(2)
If a taxpayer has not satisfied the condition of subsection (c)(2) before the time prescribed by law (including extensions thereof) for filing the return for the taxable year during which he paid or incurred moving expenses which would otherwise be deductible under this section, but may still satisfy such condition, then such expenses may (at the election of the taxpayer) be deducted for such taxable year notwithstanding subsection (c)(2).
(3)
If—
(A)
for any taxable year moving expenses have been deducted in accordance with the rule provided in paragraph (2), and
(B)
the condition of subsection (c)(2) cannot be satisfied at the close of a subsequent taxable year,
then an amount equal to the expenses which were so deducted shall be included in gross income for the first such subsequent taxable year.
(f)
Self-employed individual
For purposes of this section, the term “self-employed individual” means an individual who performs personal services—
(g)
Rules for members of the Armed Forces of the United States
In the case of a member of the Armed Forces of the United States on active duty who moves pursuant to a military order and incident to a permanent change of station—
(2)
any moving and storage expenses which are furnished in kind (or for which reimbursement or an allowance is provided, but only to the extent of the expenses paid or incurred) to such member, his spouse, or his dependents, shall not be includible in gross income, and no reporting with respect to such expenses shall be required by the Secretary of Defense or the Secretary of Transportation, as the case may be; and
(3)
if moving and storage expenses are furnished in kind (or if reimbursement or an allowance for such expenses is provided) to such member’s spouse and his dependents with regard to moving to a location other than the one to which such member moves (or from a location other than the one from which such member moves), this section shall apply with respect to the moving expenses of his spouse and dependents—
(h)
Special rules for foreign moves
(1)
Allowance of certain storage fees
In the case of a foreign move, for purposes of this section, the moving expenses described in subsection (b)(1)(A) include the reasonable expenses—
(i)
Allowance of deductions in case of retirees or decedents who were working abroad
(1)
In general
In the case of any qualified retiree moving expenses or qualified survivor moving expenses—
(2)
Qualified retiree moving expenses
For purposes of paragraph (1), the term “qualified retiree moving expenses” means any moving expenses—
(3)
Qualified survivor moving expenses
For purposes of paragraph (1), the term “qualified survivor moving expenses” means moving expenses—
(A)
which are paid or incurred by the spouse or any dependent of any decedent who (as of the time of his death) had a principal place of work outside the United States, and
(B)
which are incurred for a move which begins within 6 months after the death of such decedent and which is to a residence in the United States from a former residence outside the United States which (as of the time of the decedent’s death) was the residence of such decedent and the individual paying or incurring the expense.
(j)
Regulations
The Secretary shall prescribe such regulations as may be necessary to carry out the purposes of this section.