1993 Instructions For Form 3903-F (Page 2 of 2) in pdf

moving expense deduction to add to the

own car, figure transportation costs as

of your old home. If you checked box a on

basis of your new home. Use Form 2119,

explained in the instructions for lines 4 and 5.

line 14, use any amount on line 14 that you

Sale of Your Home, to figure the gain, if any,

If you are self-employed, you may deduct

cannot deduct because of the dollar limit to

you must report on the sale of your old home

househunting costs only if you had already

increase the basis of your new home.

and the adjusted basis of the new one.

made substantial arrangements to begin work

Line 18.—If you are a member of the armed

in the new location. See Pub. 521 for factors

If you file Form 2555, Foreign Earned

forces, add the amounts on lines 3, 7, and

used to determine if substantial arrangements

Income, to exclude any of your income or

17. From that total, subtract the total

were made.

housing costs, you may not deduct the part

reimbursements and allowances you received

of your moving expenses that is allocable to

You may deduct the costs of meals and

from the government in connection with the

the excluded income. See the instructions for

lodging while occupying temporary quarters

move. If the result is more than zero, enter

line 19 and Pub. 54, Tax Guide for U.S.

in the area of your new workplace. Include

the result on line 18. Then, complete the rest

Citizens and Resident Aliens Abroad, for

these costs for any period of 90 days in a

of the form to figure the amount to enter on

information on how to figure the part of your

row after you get the job but before you

Schedule A, line 18.

moving expenses that is allocable to the

move into permanent quarters. If you are

Line 19.—If you file Form 2555 and your

excluded income and how to report this

self-employed, you may count these

period of bona fide residence or physical

amount.

expenses only if you had already made

presence in the year of your move is 120

substantial arrangements to begin work in the

days or more, the moving expense is

Specific Instructions

new location.

connected with earning the income at the

Lines 13 and 14.—Enter your qualified real

foreign location in the year of your move.

Part I—Moving Expenses

estate expenses. Also, check the appropriate

Figure the unallowable part of the moving

Line 3.—Enter the actual cost to pack, crate,

box, a or b. You may include most of the

expenses by multiplying the amount on line

move, store, and insure your household

costs to sell or buy a home or to settle or get

18 by a fraction. The numerator of the

goods and personal effects. Also, include

a lease. Examples of expenses you may

fraction is the excluded income and the

moving your possessions to and from storage

include are:

denominator is total foreign earned income.

and storing them for all or part of the time the

Enter the result on line 19. Attach a statement

Sales commissions.

new workplace continues to be your principal

to your return showing how you figured this

Advertising costs.

workplace.

amount.

Attorney’s fees.

Note: If you moved in an earlier year and are

If your period of bona fide residence or

Title and escrow fees.

claiming only storage fees during your

physical presence in the year of your move is

absence from the United States, you do not

less than 120 days, the moving expense

State transfer taxes.

have to complete this form. Enter the net

(except storage expense) is connected with

Costs to settle an unexpired lease such as

amount (after the reduction for the part that is

earning the income at the foreign location in

attorney’s fees, real estate commissions, or

allocable to excluded income) on Schedule A

the year of the move and the year following

amounts paid to the lessor.

(Form 1040), line 18. Next to the amount,

the move. Figure the unallowable part of the

Fees or commissions to get a lease,

write “Storage Fees.”

moving expense by multiplying the amount on

sublease, or an assignment of a lease.

line 18 by a fraction. The numerator of the

Lines 4 and 5.—Enter the costs of travel

Examples of expenses you may not include

fraction is the income excluded in both years

from your old home to your new home. These

are:

and the denominator is the total foreign

include transportation, meals, and lodging on

earned income in both years. Enter the result

the way. Include costs for the day you arrive.

Costs to improve your home to help it sell.

on line 19. Attach a statement to your return

Report the cost of transporation and lodging

Charges for payment or prepayment of

showing how you figured this amount.

on line 4. Report your meal expenses

interest.

separately on line 5. Although not all the

Recapture of Moving Expense Deduction.—

Payments or prepayments of rent (including

members of your household have to travel

If your moving expense deduction is

security deposits) to get a new lease.

together or at the same time, you may only

attributable to your foreign earnings in 2 years

include expenses for one trip per person.

(the year of the move and the following year),

Part II—Dollar Limits and

you should preferably request an extension of

If you use your own cars, you may figure

Moving Expense Deduction

time to file your return for the year of the

the expenses by using either:

move until after the end of the following year.

Lines 15 and 17.—The dollar limits on these

Actual out-of-pocket expenses for gas and

You would then have all the information

lines apply to the total expenses per move

oil, or

even though you may claim expenses related

needed to properly figure the moving expense

Mileage at the rate of 9 cents a mile.

deduction.

to the same move in more than 1 year. For

You may add parking fees and tolls to the

more details, see How To Report in Pub.

If you do not request an extension, you

amount claimed under either method. Keep

521.

should provisionally figure the part of the

records to verify your expenses.

entire moving expense deduction that is

If both you and your spouse began work at

disallowed by multiplying the moving expense

Lines 8 through 10.—Enter the costs of

new workplaces and shared the same new

by a fraction. The numerator of the fraction is

travel to look for a new home before you

home at the end of 1993, you must treat this

move and temporary quarters expenses after

as one move rather than two. If you file

your excluded foreign earned income for the

year of the move and the denominator is your

you move. Report pre-move househunting

separate returns, each of you is limited to a

total foreign earned income for the year of the

travel and lodging on line 8, temporary

total of $2,250 on line 15, and to a total of

move. Then, when you know your foreign

quarters expenses on line 9, and the

$3,000 on line 17.

earnings and exclusion for the following year,

combined cost of meals on line 10.

If both you and your spouse began work at

you must adjust the moving expense

Pre-move househunting expenses are

new workplaces but each of you moved to

deduction by filing an amended return for the

deductible only if you:

separate new homes, this is treated as two

year of the move, or by recapturing any

separate moves. If you file a joint return, line

Took the trip after you got the job, and

additional unallowable amount as income on

15 is limited to a total of $9,000, and line 17

Returned to your old home after looking for

your return for the following year. If after you

is limited to a total of $12,000. If you file

a new one, and

make the final computation you have an

separate returns, each of you is limited to a

additional amount of allowable moving

Traveled to the general location of the new

total of $4,500 on line 15, and a total of

expense deduction, you may claim this only

workplace primarily to look for a new home.

$6,000 on line 17.

on an amended return for the year of the

There is no limit on the number of

Note: If you checked box a on line 13, any

move; you may not claim it on the return for

househunting trips you may take and you do

amount on line 13 that you cannot deduct

the second year.

not have to be successful in finding a home

because of the dollar limit should be used on

to qualify for this deduction. If you used your

Form 2119 to decrease the gain on the sale

Page 2

1993 Instructions For Form 3903-F Page 2

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