In January, Susan’s employer transferred her from Chicago to Houston (where she continues to work for the remainder of the year). Her expenses are as follows:

Transportation for household goods $2,300 Airfare from Chicago to Houston 200 Pre-move house-hunting travel 700 Temporary living expenses in Houston 400 Apartment lease cancellation fee 1,200 Total moving expenses paid $4,800

a. If Susan is not reimbursed for any of these expenses, how much of her moving expenses can she deduct?

b. If Susan’s employer reimburses her $3,600 for all of these moving expenses except the lease cancellation fee, will she have any taxable income?

AppendixLO1