Michael graduates from New York University and on February 1st of the current year, accepts a position with a public accounting firm in Chicago. Michael is a resident of New York. In March, Michael travels to Chicago to locate a house and starts to work in June. He incurs the following expenses, none of which are reimbursed by the public accounting firm. Item Amount Automobile expense en route (1,000 miles at 16.5 cents per mile - standard mileage rate) $ 165 Cost of meals en route 100 Househunting trip travel expenses 1,400 Moving van expenses 3,970 Commission on the sale of Michael's New York condominium 3,500 Points paid to acquire a mortgage on Michael's new residence in Chicago 1,000 Temporary living expenses for on week in Chicago (hotel and $100 in meals) 400 Expenses incurred in decorating the new residence 500 Total expenses $ 11,035 Required: a. What is Michael's moving expense deduction? b. How are the deductible expenses classified on Michael's tax return? c. How would your answer to Part a change if all of Michael's expenses were reimbursed by his employer and he received a check for $11,035 .

1. Michael graduates from New York University and on February
1st of the current year, accepts a position with a public
accounting firm in Chicago. Michael is a resident of New York.
In March, Michael travels to Chicago to locate a house and
starts to work in June. He incurs the following expenses, none
of which are reimbursed by the public accounting firm.
Item
Amount
Automobile expense en route (1,000 miles at 16.5 cents per mile
- standard mileage rate)
$
165
Cost of meals en route
100
Househunting trip travel expenses
1,400
Moving van expenses

2. 3,970
Commission on the sale of Michael's New York condominium
3,500
Points paid to acquire a mortgage on Michael's new residence in
Chicago
1,000
Temporary living expenses for on week in Chicago (hotel and
$100 in meals)
400
Expenses incurred in decorating the new residence
500
Total expenses

3. $ 11,035
Required:
a. What is Michael's moving expense deduction?

5. b. How are the deductible expenses classified on Michael's tax
return?
c. How would your answer to Part a change if all of Michael's
expenses were reimbursed by his employer and he received a
check for $11,035