Identify as many tax-related issues as possible
Helen Hanks, who is in the military and lives in Dayton, Ohio, has been notified that she will have a permanent change in her station which will require her to move to San Diego, California. Helen's significant other, Tom Hunt, has lived with her for 10 years and will be moving with her to California. Helen's children from a previous marriage will also be joining her in California. The children have been living with their father in Europe for the past two years. Helen easily sells her house in Ohio which she and Tom have lived. Helen is the sole owner of the house. However, she has a harder time finding the right home in San Diego. Helen has to make several trips to California before buying a house under construction. It will not be available for occupancy for at least 20 days after she arrives in San Diego. 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, along with her sailboat. The movers then leave for San Diego. Helen hires a college student to drive her car to California; the driver leaves on Friday. On Saturday, after dropping Helen at the airport for her flight to San Diego, Tom leaves to drive his car to San Diego. He will first drive to Seattle, Washington, where he will visit his brother. Helen and Tom stay in a hotel from Wednesday to Friday while still in Ohio and upon arriving in San Diego until the house is ready for occupancy. The moving company stores their household items at its warehouse until Helen and Tom are ready to move into their new house. Helen's children arrive two weeks later. In November of the current year, Helen pays for all the costs involved in selling the Ohio home and moving Tom, the children, and herself to California. Helen's employer eventually reimburses her (in March of the next year) for 75 percent of all costs of moving the household items (Helen's and Tom's), Helen's car, and two house-hunting trips. The employer also reimburses Helen for 50 percent of the total hotel and meal costs while she and Tom were in San Diego and waiting for completion of their home. Advise Helen on the tax consequences of the above events. Helen Hanks, who is in the military and lives in Dayton, Ohio, has been notified that she will have a permanent change in her station which will require her to move to San Diego, California. Helen's significant other, Tom Hunt, has lived with her for 10 years and will be moving with her to California. Helen's children from a previous marriage will also be joining her in California. The children have been living with their father in Europe for the past two years. Helen easily sells her house in Ohio which she and Tom have lived. Helen is the sole owner of the house. However, she has a harder time finding the right home in San Diego. Helen has to make several trips to California before buying a house under construction. It will not be available for occupancy for at least 20 days after she arrives in San Diego. 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, along with her sailboat. The movers then leave for San Diego. Helen hires a college student to drive her car to California; the driver leaves on Friday. On Saturday, after dropping Helen at the airport for her flight to San Diego, Tom leaves to drive his car to San Diego. He will first drive to Seattle, Washington, where he will visit his brother. Helen and Tom stay in a hotel from Wednesday to Friday while still in Ohio and upon arriving in San Diego until the house is ready for occupancy. The moving company stores their household items at its warehouse until Helen and Tom are ready to move into their new house. Helen's children arrive two weeks later. In November of the current year, Helen pays for all the costs involved in selling the Ohio home and moving Tom, the children, and herself to California. Helen's employer eventually reimburses her (in March of the next year) for 75 percent of all costs of moving the household items (Helen's and Tom's), Helen's car, and two house-hunting trips. The employer also reimburses Helen for 50 percent of the total hotel and meal costs while she and Tom were in San Diego and waiting for completion of their home. Advise Helen on the tax consequences of the above events
