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Subject Author Date
Is Uniform Relocation Assistance money taxable? Tapas Das 03-19-2007
Posted by Tapas Das on March 19, 2007, 11:12 am
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 I received a one-time cash payment for Relocation Assistance
under the Uniform Relocation Assistance and Real Property
Acquisitions Policies Act of 1970.

My question is, do I have to report this extra income on my
Federal and State Tax? Do I need to consider this as extra
income on my 2006 Tax Filing?

My previous rental place changed to a Section 8 project and
I was asked to move out since I did not qualify within the
eligible income range.

I was forced to find another rental property at a higher
price.

I was given a check for several thousand dollars by my
previous apartment mangers. They said I was eligible for
Relocation Assistance that came under the Federal URA Act
and it included payment for Moving Expenses and Replacement
Housing Payment.

They calculated the monthly difference on my current rental
and my previous rental and paid my 42 times that amount
according to law.

Thanks for any assistance you could offer.

Tapas

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Posted by Tapas Das on March 21, 2007, 1:46 pm
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 I did some more research and came up with the following IRS
Guideline pertaining to the Uniform Relocation Assistance
and Real Property Acquisition Policies of 1970.

IRS Publication 521 has this to say:

http://www.irs.gov/publications/p521/ar02.html#d0e1715

"Do not include in income any moving expense payment you
received under the Uniform Relocation Assistance and Real
Property Acquisition Policies Act of 1970. These payments
are made to persons displaced from their homes, businesses,
or farms by federal projects."

Does this mean that I do not need to report the Relocation
Assistance I received?

Tapas

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by Herb Smith on March 23, 2007, 6:12 am
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> I did some more research and came up with the following IRS
> Guideline pertaining to the Uniform Relocation Assistance
> and Real Property Acquisition Policies of 1970.
>
> IRS Publication 521 has this to say:
>
> http://www.irs.gov/publications/p521/ar02.html#d0e1715
>
> "Do not include in income any moving expense payment you
> received under the Uniform Relocation Assistance and Real
> Property Acquisition Policies Act of 1970. These payments
> are made to persons displaced from their homes, businesses,
> or farms by federal projects."
>
> Does this mean that I do not need to report the Relocation
> Assistance I received?

Isn't that what the quote above says?

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by Tapas Das on March 26, 2007, 11:16 am
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> Isn't that what the quote above says?

Yes, you are correct. That was my understanding too. That
quote states plainly that Relocation Assistance Payments
should not be included as extra income. In other words, this
money received under the stated Federal program is tax
deductible.

I wanted to post this question to the experts of this group
to find if my assumption was right or wrong.

Thanks,

Tapas

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

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