
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 26USC217]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                        Subtitle A--Income Taxes
 
                  CHAPTER 1--NORMAL TAXES AND SURTAXES
 
               Subchapter B--Computation of Taxable Income
 
        PART VII--ADDITIONAL ITEMIZED DEDUCTIONS FOR INDIVIDUALS
 
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, and
            (B) of traveling (including lodging) from the former 
        residence to the new place of residence.

    Such term shall not include any expenses for meals.

                 (2) Individuals other than taxpayer

        In the case of any individual other than the taxpayer, expenses 
    referred to in 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--
            (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) Repealed. Pub. L. 103-66, title XIII, Sec. 13213(a)(2)(A), Aug. 10, 
        1993, 107 Stat. 473]

(f) Self-employed individual

    For purposes of this section, the term ``self-employed individual'' 
means an individual who performs personal services--
        (1) as the owner of the entire interest in an unincorporated 
    trade or business, or
        (2) as a partner in a partnership carrying on a trade or 
    business.

(g) Rules for members of the Armed Forces of the United States

    In the case of a member of the Armed Forces of the United States on 
active duty who moves pursuant to a military order and incident to a 
permanent change of station--
        (1) the limitations under subsection (c) shall not apply;
        (2) any moving and storage expenses which are furnished in kind 
    (or for which reimbursement or an allowance is provided, but only to 
    the extent of the expenses paid or incurred) to such member, his 
    spouse, or his dependents, shall not be includible in gross income, 
    and no reporting with respect to such expenses shall be required by 
    the Secretary of Defense or the Secretary of Transportation, as the 
    case may be; and
        (3) if moving and storage expenses are furnished in kind (or if 
    reimbursement or an allowance for such expenses is provided) to such 
    member's spouse and his dependents with regard to moving to a 
    location other than the one to which such member moves (or from a 
    location other than the one from which such member moves), this 
    section shall apply with respect to the moving expenses of his 
    spouse and dependents--
            (A) as if his spouse commenced work as an employee at a new 
        principal place of work at such location; and
            (B) without regard to the limitations under subsection (c).

(h) Special rules for foreign moves

                (1) Allowance of certain storage fees

        In the case of a foreign move, for purposes of this section, the 
    moving expenses described in subsection (b)(1)(A) include the 
    reasonable expenses--
            (A) of moving household goods and personal effects to and 
        from storage, and
            (B) of storing such goods and effects for part or all of the 
        period during which the new place of work continues to be the 
        taxpayer's principal place of work.

                          (2) Foreign move

        For purposes of this subsection, the term ``foreign move'' means 
    the commencement of work by the taxpayer at a new principal place of 
    work located outside the United States.

                      (3) United States defined

        For purposes of this subsection and subsection (i), the term 
    ``United States'' includes the possessions of the United States.

(i) Allowance of deductions in case of retirees or decedents who were 
        working abroad

                           (1) In general

        In the case of any qualified retiree moving expenses or 
    qualified survivor moving expenses--
            (A) this section (other than subsection (h)) shall be 
        applied with respect to such expenses as if they were incurred 
        in connection with the commencement of work by the taxpayer as 
        an employee at a new principal place of work located within the 
        United States, and
            (B) the limitations of subsection (c)(2) shall not apply.

                (2) Qualified retiree moving expenses

        For purposes of paragraph (1), the term ``qualified retiree 
    moving expenses'' means any moving expenses--
            (A) which are incurred by an individual whose former 
        principal place of work and former residence were outside the 
        United States, and
            (B) which are incurred for a move to a new residence in the 
        United States in connection with the bona fide retirement of the 
        individual.

               (3) Qualified survivor moving expenses

        For purposes of paragraph (1), the term ``qualified survivor 
    moving expenses'' means moving expenses--
            (A) which are paid or incurred by the spouse or any 
        dependent of any decedent who (as of the time of his death) had 
        a principal place of work outside the United States, and
            (B) which are incurred for a move which begins within 6 
        months after the death of such decedent and which is to a 
        residence in the United States from a former residence outside 
        the United States which (as of the time of the decedent's death) 
        was the residence of such decedent and the individual paying or 
        incurring the expense.

(j) Regulations

    The Secretary shall prescribe such regulations as may be necessary 
to carry out the purposes of this section.

(Added Pub. L. 88-272, title II, Sec. 213(a)(1), Feb. 26, 1964, 78 Stat. 
50; amended Pub. L. 91-172, title II, Sec. 231(a), Dec. 30, 1969, 83 
Stat. 577; Pub. L. 94-455, title V, Sec. 506 (a)-(c), title XIX, 
Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1568, 1834; Pub. L. 95-615, 
title II, Sec. 204, Nov. 8, 1978, 92 Stat. 3106; Pub. L. 103-66, title 
XIII, Sec. 13213(a)(1)-(2)(D), (b), Aug. 10, 1993, 107 Stat. 473, 474.)


                            Prior Provisions

    A prior section 217 was renumbered section 222 of this title.


                               Amendments

    1993--Subsec. (b). Pub. L. 103-66, Sec. 13213(a)(1), amended subsec. 
(b) generally, restating former par. (1)(A) and (B) as par. (1) and 
former par. (3)(C) as par. (2) and striking out former par. (1)(C) to 
(E) which included certain traveling, meals, lodging, and residence 
sale, purchase, and lease expenses in the term ``moving expenses'', par. 
(2) which defined ``qualified residence sale, purchase, or lease 
expenses'', and par. (3)(A) and (B) which placed dollar limits on the 
amount allowed to be deducted as moving expenses.
    Subsec. (c)(1). Pub. L. 103-66, Sec. 13213(b), substituted ``50 
miles'' for ``35 miles'' in subpars. (A) and (B).
    Subsec. (e). Pub. L. 103-66, Sec. 13213(a)(2)(A), struck out heading 
and text of subsec. (e). Text read as follows: ``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).''
    Subsec. (f). Pub. L. 103-66, Sec. 13213(a)(2)(B), amended heading 
and text of subsec. (f) generally. Prior to amendment, text read as 
follows:
    ``(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.''
    Subsec. (g)(3). Pub. L. 103-66, Sec. 13213(a)(2)(C), inserted 
``and'' at end of subpar. (A), redesignated subpar. (C) as (B), and 
struck out former subpar. (B) which read as follows: ``for purposes of 
subsection (b)(3), as if such place of work was within the same general 
location as the member's new principal place of work, and''.
    Subsec. (h). Pub. L. 103-66, Sec. 13213(a)(2)(D), redesignated pars. 
(2) to (4) as (1) to (3), respectively, and struck out heading and text 
of former par. (1). Text read as follows: ``In the case of a foreign 
move--
        ``(A) subsection (b)(1)(D) shall be applied by substituting `90 
    consecutive days' for `30 consecutive days',
        ``(B) subsection (b)(3)(A) shall be applied by substituting 
    `$4,500' for `$1,500' and by substituting `$6,000' for `$3,000', and
        ``(C) subsection (b)(3)(B) shall be applied as if the last 
    sentence of such subsection read as follows: `In the case of a 
    husband and wife filing separate returns, subparagraph (A) shall be 
    applied by substituting ``$2,250'' for ``$4,500'', and by 
    substituting ``$3,000'' for ``$6,000''.' ''
    1978--Subsecs. (h) to (j). Pub. L. 95-615 added subsecs. (h) and (i) 
and redesignated former subsec. (h) as (j).
    1976--Subsec. (b)(3)(A). Pub. L. 94-455, Sec. 506(b)(1), (2), 
substituted ``$1,500'' for ``$1,000'' after ``(1) shall not exceed'' and 
``$3,000'' for ``$2,500'' after ``lease expenses shall not exceed''.
    Subsec. (b)(3)(B). Pub. L. 94-455, Sec. 506(b)(3), substituted `` 
`$750' for `$1,500' '' for `` `$500' for `$1,000' '' after ``applied by 
substituting'' and `` `$1,500' for `$3,000' '' for `` `$1,250' for 
`$2,500' '' after ``and by substituting''.
    Subsec. (c)(1)(A), (B). Pub. L. 94-455, Sec. 506(a), substituted 
``35'' for ``50'' after ``at least''.
    Subsecs. (g), (h). Pub. L. 94-455, Secs. 506(c), 1906(b)(13)(A), 
added subsec. (g), redesignated former subsec. (g) as (h) and struck out 
``or his delegate'' after ``Secretary''.
    1969--Pub. L. 91-172 substantially reenacted existing provisions and 
extended the coverage to self-employed persons working at the new 
location for 78 weeks, made it a requirement that the new principal 
place of work be located 50 miles from the former residence, and 
redefined the deduction to include costs of house-hunting trips, 
temporary living expenses prior to locating a new home, and expenses of 
selling an old home or buying a new one.


                    Effective Date of 1993 Amendment

    Amendment by Pub. L. 103-66 applicable to expenses incurred after 
Dec. 31, 1993, see section 13213(e) of Pub. L. 103-66 set out as a note 
under section 62 of this title.


         Effective Date of 1978 Amendment; Election of Prior Law

    Amendment by Pub. L. 95-615 applicable to taxable years beginning 
after Dec. 31, 1977, with provision for election of prior law, see 
section 209 of Pub. L. 95-615, set out as an Effective Date of 1978 
Amendment note under section 911 of this title.


                    Effective Date of 1976 Amendment

    Section 506(d) of Pub. L. 94-455 provided that: ``The amendments 
made by subsections (a) and (b) [amending this section] shall apply to 
taxable years beginning after December 31, 1976.''


                    Effective Date of 1969 Amendment

    Section 231(d) of Pub. L. 91-172, as amended by Pub. L. 91-642, 
Sec. 2, Dec. 31, 1970, 84 Stat. 1880; Pub. L. 99-514, Sec. 2, Oct. 22, 
1986, 100 Stat. 2095, provided that: ``The amendments made by this 
section [enacting section 82 of this title and amending this section and 
sections 1001 and 1016 of this title] shall apply to taxable years 
beginning after December 31, 1969, except that--
        ``(1) section 217 of the Internal Revenue Code of 1986 [formerly 
    I.R.C. 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 January 1, 1971, 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.''


                             Effective Date

    Section applicable to expenses incurred after Dec. 31, 1963, in 
taxable years ending after such date, see section 213(d) of Pub. L. 88-
272, set out as an Effective Date of 1964 Amendment note under section 
62 of this title.


          Moving Expenses of Members of the Uniformed Services

    Pub. L. 93-490, Sec. 2, Oct. 26, 1974, 88 Stat. 1466, authorized the 
Secretary of the Treasury, applicable with respect to taxable years 
ending before January 1, 1976, to:
        (1) enter into an agreement with the Secretary concerned under 
    which the Secretary concerned would not be required to withhold tax 
    on, or to report, moving expense reimbursements made to members of 
    the armed forces;
        (2) permit any taxpayer who was a member of the armed forces not 
    to include in adjusted gross income the amount of any reimbursement 
    in kind of moving expenses made by the Secretary concerned; and
        (3) permit any taxpayer who was a member of the armed forces to 
    deduct any amount paid by him as moving expenses in connection with 
    any move required by the Secretary concerned, in excess of any 
    reimbursement received for such expenses, without regard to the 
    provisions of subsec. (c) of this section, to the extent it was 
    otherwise deductible under this section.

                  Section Referred to in Other Sections

    This section is referred to in sections 23, 62, 132, 274, 3121, 
3306, 3401, 7872 of this title; title 42 section 409.
