Please provide me an answer to help me with this assignment


Assignments & Exams

Course: 
Tax Research & Policy: TAX-505-2107

Assignment 3 (from chapter 6)

Helen Hanks, who lives in San Francisco, California, has just been promoted to manager of the divisional office. However, the divisional office is located in Portland, Oregon. Helen's significant other, Tom Hunt, will be moving with her to Portland. Helen's children from a previous marriage will also be joining her in Portland. The children have been living with their father in Spain for the past year.

Helen easily sells the San Francisco house in which she and Tom live. Helen is the sole owner of the house. However, she has had a harder time finding the right home in Portland. Helen has to make several trips to Portland before buying a house under construction. It will not be available for occupancy for at least 20 days after she arrived in Portland. Tom accompanied Helen on the house hunting trips to give his opinion on the houses and to look for a new job.


The actual move takes place as follows. The movers arrive on Wednesday to pack up Helen’s and Tom’s household items. Thursday, the movers pack up Helen's items from a storage unit located outside of the city, and her sailboat. The movers then leave for Portland. Helen hires someone to drive her car to Portland. The driver leaves on Friday. On Saturday, after dropping Helen at the airport for her flight to Portland, Tom leaves and drives his car to Portland via Salt Lake City, Utah, where he visits his brother. Tom and Helen stayed in a hotel Wednesday through Friday while still in San Francisco and upon arriving in Portland until the house is ready for occupancy. The moving company stores their household items at its warehouse until Helen and Tom are ready to move in. Helen's children arrive two weeks later after she and Tom have finally moved into the new house.


Helen pays for all of the costs involved in selling the San Francisco home and moving Tom, the children, and herself to Portland in November of the current year. Helen's employer eventually reimburses her (in March of next year) for 75% of all costs of moving the household items (Helen's and Tom’s), Helen's car and the expenses of two of the house hunting trips. The employer also reimburses Helen for 50% of the total hotel and meal costs while she and Tom were in Portland waiting for the completion of their home.


Please advise Helen of the tax consequences of the above events. Please make sure to cite all relevant authorities that support your conclusions.