Michael graduates from New York University and on February 1, 2016, 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:
Automobile expense enroute
(1,000 miles at 19 cents per mile—standard mileage rate)........................................$ 190
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 one week in Chicago (hotel and $100 in meals)........400
Expenses incurred in decorating the new residence......................................................500
Total expenses.............................................................................................................$11,060

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 $11,060?