MOVING EXPENSES.

SEC. 231. MOVING EXPENSES. (a) Deduction for Moving Expenses.—Section 217 (relating to moving expenses) is amended to read as follows: “SEC. 217. MOVING EXPENSES. “(a) Deduction Allowed.—There shall be allowed as a deduction moving expenses paid or incurred during the taxable year in connection with the commencement of work by the taxpayer as an employee or as a self-employed individual at a new principal place of work. “(b) Definition of Moving Expenses.— “(1) In general.—For purposes of this section, the term ‘moving expenses’ means only the reasonable expenses— “(A) of moving household goods and personal effects from the former residence to the new residence, “(B) of traveling (including meals and lodging) from the former residence to the new place of residence, “(C) of traveling (including meals and lodging), after obtaining employment, from the former residence to the general location of the new principal place of work and return, for the principal purpose of searching for a new residence, “(D) of meals and lodging while occupying temporary quarters in the general location of the new principal place of work during any period of 30 consecutive days after obtaining employment, or “(E) constituting qualified residence sale, purchase, or lease expenses. “(2) Qualified residence sale, etc., expenses.—For purposes of paragraph (1)(E), the term ‘qualified residence sale, purchase, or lease expenses’ means only reasonable expenses incident to— “(A) the sale or exchange by the taxpayer or his spouse of the taxpayer’s former residence (not including expenses for work performed on such residence in order to assist in its sale) which (but for this subsection and subsection (e)) would be taken into account in determining the amount realized on the sale or exchange, “(B) the purchase by the taxpayer or his spouse of a new residence in the general location of the new principal place of work which (but for this subsection and subsection (e)) would be taken into account in determining— “(i) the adjusted basis of the new residence, or “(ii) the cost of a loan (but not including any amounts which represent payments or prepayments of interest), “(C) the settlement of an unexpired lease held by the taxpayer or his spouse on property used by the taxpayer as his former residence, or “(D) the acquisition of a lease by the taxpayer or his spouse on property used by the taxpayer as his new residence in the general location of the new principal place of work (not including amounts which are payments or prepayments of rent). “(3) Limitations.— “(A) Dollar limits.—The aggregate amount allowable as a deduction under subsection (a) in connection with a commencement of work which is attributable to expenses described in subparagraph (C) or (D) of paragraph (1) 83 Stat. 578 shall not exceed $1,000. The aggregate amount allowable as a deduction under subsection (a) which is attributable to qualified residence sale, purchase, or lease expenses shall not exceed $2,500, reduced by the aggregate amount so allowable which is attributable to expenses described in subparagraph (C) or (D) of paragraph (1). “(B) Husband and wife.—If a husband and wife both commence work at a new principal place of work within the same general location, subparagraph (A) shall be applied as if there was only one commencement of work. In the case of a husband and wife filing separate returns, subparagraph (A) shall be applied by substituting ‘$500’ for ‘$1,000’, and by substituting ‘$1,250’ for ‘$2,500’. “(C) Individuals other than taxpayer.—In the case of any individual other than the taxpayer, expenses referred to in subparagraphs (A) through (D) of paragraph (1) shall be taken into account only if such individual has both the former residence and the new residence as his principal place of abode and is a member of the taxpayer’s household. “(c) Conditions for Allowance.—No deduction shall be allowed under this section unless— “(1) the taxpayer’s new principal place of work— “(A) is at least 50 miles farther from his former residence than was his former principal place of work, or “(B) if he had no former principal place of work, is at least 50 miles from his former residence, and “(2) either— “(A) during the 12-month period immediately following his arrival in the general location of his new principal place of work, the taxpayer is a full-time employee, in such general location, during at least 39 weeks, or “(B) during the 24-month period immediately following his arrival in the general location of his new principal place of work, the taxpayer is a full-time employee or performs services as a self-employed individual on a full-time basis, in such general location, during at least 78 weeks, of which not less than 39 weeks are during the 12-month period referred to in subparagraph (A). For purposes of paragraph (1), the distance between two points shall be the shortest of the more commonly traveled routes between such two points. “(d) Rules for Application of Subsection (c)(2).— “(1) The condition of subsection (c)(2) shall not apply if the taxpayer is unable to satisfy such condition by reason of— “(A) death or disability, or “(B) involuntary separation (other than for willful misconduct) from the service of, or transfer for the benefit of, an employer after obtaining full-time employment in which the taxpayer could reasonably have been expected to satisfy such condition. “(2) If a taxpayer has not satisfied the condition of subsection (c)(2) before the time prescribed by law (including extensions thereof) for filing the return for the taxable year during which he paid or incurred moving expenses which would otherwise be deductible under this section, but may still satisfy such condition, then such expenses may (at the election of the taxpayer) be deducted for such taxable year notwithstanding subsection (c)(2). “(3) If— 83 Stat. 579 “(A) for any taxable year moving expenses have been deducted in accordance with the rule provided in paragraph (2), and “(B) the condition of subsection (c)(2) cannot be satisfied at the close of a subsequent taxable year, then an amount equal to the expenses which were so deducted shall be included in gross income for the first such subsequent taxable year. “(e) Denial of Double Benefit.—The amount realized on the sale of the residence described in subparagraph (A) of subsection (b)(2) shall not be decreased by the amount of any expenses described in such subparagraph which are allowed as a deduction under subsection (a), and the basis of a residence described in subparagraph (B) of subsection (b)(2) shall not be increased by the amount of any expenses described in such subparagraph which are allowed as a deduction under subsection (a). This subsection shall not apply to any expenses with respect to which an amount is included in gross income under subsection (d)(3). “(f) Rules for Self-Employed Individuals.— “(1) Definition.—For purposes of this section, the term ‘self-employed individual’ means an individual who performs personal services— “(A) as the owner of the entire interest in an unincorporated trade or business, or “(B) as a partner in a partnership carrying on a trade or business. “(2) Rule for application of subsections (b)(1)(c) and (d).—For purposes of subparagraphs (C) and (D) of subsection (b)(1), an individual who commences work at a new principal place of work as a self-employed individual shall be treated as having obtained employment when he has made substantial arrangements to commence such work. “(g) Regulations.—The Secretary or his delegate shall prescribe such regulations as may be necessary to carry out the purposes of this section.” (b) Inclusion in Gross Income of Moving Expense Reimbursements.—Part II of subchapter B of chapter 1 (relating to items specifically included in gross income) is amended by adding after section 81 the following new section: “SEC. 82. REIMBURSEMENT FOR EXPENSES OF MOVING. “There shall be included in gross income (as compensation for services) any amount received or accrued, directly or indirectly, by an individual as a payment for or reimbursement of expenses of moving from one residence to another residence which is attributable to employment or self-employment.” (c) Conforming Amendments.— (1) The table of sections for part II of subchapter B of chapter 1 is amended by adding at the end thereof the following new item: “Sec. 82. Reimbursement of moving expenses.” (2) Section 1001 (relating to determination of amount and recognition of gain or loss) is amended by adding after subsection (e) (as added by section 516(a) of this Act) the following new subsection: “(f) Cross Reference.— “For treatment of certain expenses incident to the sale of a residence which were deducted as moving expenses by the taxpayer or his spouse under section 217(a) see section 217(e).” 83 Stat. 580 (3) Section 1016(c) is amended to read as follows: “(c) Cross References.— “(1) For treatment of certain expenses incident to the purchase of a residence which were deducted as moving expenses by the taxpayer or his spouse under section 217(a), see section 217(e). “(2) For treatment of separate mineral interests as one property, see section 614.” (d) Effective Dates.—The amendments made by this section shall apply to taxable years beginning after December 31, 1969, except that— (1) section 217 of the Internal Revenue Code of 1954 (as amended by subsection (a)) shall not apply to any item to the extent that the taxpayer received or accrued reimbursement or other expense allowance for such item in a taxable year beginning on or before December 31, 1969, which was not included in his gross income; and (2) the amendments made by this section shall not apply (at the election of the taxpayer made at such time and manner as the Secretary of the Treasury or his delegate prescribes) with respect to moving expenses paid or incurred before July 1, 1970, in connection with the commencement of work by the taxpayer as an employee at a new principal place of work of which the taxpayer had been notified by his employer on or before December 19, 1969.