Certified Relocation Professional (CRP) Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Enhance your relocation knowledge and skills with the CRP Exam. Study with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your exam!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

How does the law after 1994 treat moving expenses compared to before 1986?

It is stricter in defining eligible expenses
It is more lenient with deductions
It completely prohibits all deductions
It offers fewer benefits for deductions

The correct answer is: It is more lenient with deductions

The law after 1994 treats moving expenses in a way that is more lenient with deductions compared to the rules in place before 1986. After 1994, self-employed individuals and certain qualified moving expenses could still receive tax deductions, which is a reflection of a more accommodating stance in allowing taxpayers to claim some moving expenses. This lenience arises from the changes made to tax codes that allow for deductions under specific conditions, contributing to the overall support for those relocating for job-related reasons. Before 1986, moving expenses were more broadly deductible under various circumstances, but the laws shifted significantly, tightening the guidelines for deductibility. The amendments made after 1994 aimed to encourage mobility in the workforce by loosening some of those stringent restrictions, thereby making it easier for specific taxpayers to claim deductions for their moving expenses related to employment changes.