Relocation funds to be taxed

Twidget

Twidget

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KXAS-TV<br />ARLINGTON, Texas - Arlington residents who were displaced from their homes to make room for the new Dallas Cowboys stadium recently received a surprise notice in the mail. The city allocated funds to help the residents move from the homes that were condemned to clear land for the staduim. <br /><br />The residents opened their mail to find Internal Revenue Service 1099 forms, which placed a tax liability on the funds they received to assist in their relocation. <br /><br /><br />Arlington city officials said the funds are taxable by law, and the residents were treated fairly. <br /><br />Bob Magnus, one of the homeowners, said the city spent almost $10,000 to move him across Arlington. He said the amount exceeded what he thought the move should have cost. <br /><br />
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This really takes the cake. Here is the story. These poor folks were run out of their homes, now they are getting taxed for it. :mad:
 
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18rabbit

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Re: Relocation funds to be taxed

Hey, no one made them stay in America. They could have left anytime they wanted, could have renounced their citizenship, presuming the gvt would give them permission to renounce, and pursued a better life elsewhere.
 
heycods

heycods

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Re: Relocation funds to be taxed

two more opps and hell be at 2600 :D ;) :p
 
jtexas

jtexas

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Re: Relocation funds to be taxed

What exactly is the issue here? What's certain in life: Death and Taxes. USC Title 26, Section 1, All income from any source is taxable. How could anybody be surprised about that? People get free money for nothing and now they complain about paying taxes? What a bunch of freeking whiners!<br /><br />[excellent signature, by the way]
 
JB

JB

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Re: Relocation funds to be taxed

There will be a tax on those exttra posts, 18R. :D
 
heycods

heycods

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Re: Relocation funds to be taxed

The way I under stand it . the city moved them , they never saw any money. and the city placed a HIGH value on the moving cost, and now they owe Taxes on the accessed moving cost. SUX to me , If I wasnt going to move, It wouldnt cost me anything, they were evicted and taxed for the eviction.Sounds downright Commie to me.
 
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rwise

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Re: Relocation funds to be taxed

that what we need is taxes on taxes
 
S

SwampNut

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Re: Relocation funds to be taxed

So their property was stolen, and they were forced to move, now they are being taxed on the inflated government price of getting anything done.<br /><br />However, what I don't understand is why this is taxable. When a company pays moving expenses that is income but is offset by your actual moving expenses. So it should be a wash; your liability for moving removes the "income" from the payment. Why wouldn't it be the case here?
 
jtexas

jtexas

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Re: Relocation funds to be taxed

Originally posted by SwampNut:<br /> So their property was stolen, and they were forced to move, now they are being taxed on the inflated government price of getting anything done.<br /><br />However, what I don't understand is why this is taxable. When a company pays moving expenses that is income but is offset by your actual moving expenses. So it should be a wash; your liability for moving removes the "income" from the payment. Why wouldn't it be the case here?
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City didn't "steal" anything from anybody.<br /><br />Moving expenses are only deductible if you are moving a long distance and your job location is moving a long distance also. Move to a new house in the same city without changing jobs is not deductible.<br /><br />What I would do is add it to the proceeds from the sale of my house.
 
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BassMan283

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Re: Relocation funds to be taxed

Be interesting if the city provided an itemized accounting of the moving expenses.
 
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