Attorney-at-Law

A MOVING STORY – PART DEUX

In Uncategorized on 11/02/2021 at 18:07

Misbah Idrees, Docket No. 4086-19, filed 11/2/21, meets with a less happy fate than Matthew Thomas Parmeter, the star of my blogpost “A Moving Story,” 12/21/15. Misbah moved from IL to TX on account of her health, then moved back again on account of expense, in the same year at issue. Misbah worked for the same employer in both States.

Misbah claimed moving expenses both ways. Judge Goeke nixes all but what IRS allowed in this off-the-bencher.

Misbah resided in Lewisville, TX (“The City That Spells It Right”) from January through May.

“Section 217(a) allows taxpayers to deduct moving expenses paid or incurred in connection with commencement of work as an employee at a new principal place of work. Section 217(b) generally defines the term ‘moving expenses’ as the reasonable expenses of moving household goods and personal effects and travel expenses and section 217(c) imposes conditions that the taxpayer must satisfy to be eligible to claim a deduction for moving expenses. Relevant here is section 217(c)(2)(A) which requires that during the 12-month period immediately following her arrival in her new principal place of work she must be a fulltime employee there during at least 39 weeks. Section 217(d) provides exceptions for taxpayers who are unable to satisfy the 39-week requirement by reason of death, disability, involuntary separation from employment or a transfer for the benefit of the employer. Section 217(d)(1)(B).” Transcript, at pp. 6-7.

Misbah’s relocation was none of the above. So the TX trip is out.

But there remains the return to the Land of Lincoln from The Metropolis That Spells it Right. But Misbah also has problems there, and the transcript has spelling problems.

“Section 217(b)(1) defines moving expenses as the reasonable expenses of moving household goods and personal effects from the former residence to the new residence and traveling expenses including lodging from the former residence to the new residence. Expense of moving household goods and personal effects are defined as expenses of transporting goods and affects [sic] from the taxpayer’s former residence to her new residence and packing, crating, in transit storage, and insurance. Section 1.217-1(b)(3), Income Tax Regs. Expenses that are not deductible include storage charges – other than in transit storage – the cost of acquiring new property, expenses of connecting or disconnecting utilities, penalties for breaking leases, and losses sustained from the disposal of club memberships, tuition fees, and similar items.” Transcript, at pp. 8-9.

Misbah’s testimony on her effects and affects is less than persuasive.

“At trial petitioner testified she paid cash to an individual she met at her business to move her furniture to and from Texas. We find this testimony to be vague and to lack credibility regarding her move from Texas to Illinois because in other parts of her testimony she indicated she had little, if any, in the nature of furniture or other items that she needed to move from Texas to Illinois.” Transcript, at p. 9.

*Misbah Idress Docket No 4086-19 11 2 21

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: