To: Helen Hanks
From:
Date:
Subject: Tax Treatment of Moving Expenses and Employer Reimbursement of Moving Expenses
FACTS
Helen Hanks, who lives in San Francisco, California, has just been promoted to manager of a 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 occupancy for at least
20 days after she arrives in Portland. Tom accompanied Helen on the house-hunting trips to give his
opinion on the houses and to look for a new job.
The actual move takes place as follows. The movers arrive on Wednesday to pack up Helen’s and Tom’s
household items. Thursday, the movers pack up Helen’s items from a storage unit located outside the city,
