Legal Definitions - moving expense

Definition: An expense incurred in changing one's residence. If incurred for business reasons (as when one's job requires relocation), most moving expenses are tax-deductible.

Example: John had to move to a new city for his new job. He incurred expenses for packing, transportation, and unpacking. Since the move was for business reasons, he can claim these expenses as tax-deductible moving expenses.

Explanation: Moving expenses refer to the costs incurred while changing one's residence. These expenses can include packing, transportation, and unpacking costs. If the move is for business reasons, such as a job relocation, most of these expenses can be claimed as tax-deductible moving expenses. This means that the taxpayer can deduct these expenses from their taxable income, reducing their tax liability.