Certified Relocation Professional (CRP) Practice Exam

In the context of relocation, what condition applies if an employee is transferred again?

1. The new position nullifies past moving claims

2. The 39 week test is waived

3. The employee can freely claim additional deductions

4. The employee must adhere to original contracts

The correct answer is: The 39 week test is waived

The correct choice indicates that the 39-week test is waived when an employee is transferred again. This means that if an employee has already moved for a job and meets the criteria for tax deductions related to their relocation, they may not have to meet the 39-week requirement again with a subsequent transfer. The 39-week test is a condition defined by the IRS that stipulates an employee must work full-time for at least 39 weeks out of the first 12 months after relocating in order to claim certain moving-related expenses as tax deductions. When an employee is transferred again, the implications of this previous move affect their ability to claim deductions on the new transfer, and they benefit from the waiver based on previous compliance with the moving criteria. This is crucial for understanding tax obligations and benefits associated with multiple relocations. The other options do not capture the financial aspect that is tied to repeated relocations. Nullifying past claims or adhering to original contracts doesn't directly relate to the tax benefits usually assessed during the relocation process, and additional deductions aren't freely available without clear guidelines from the IRS, such as fulfilling specific criteria set forth in the tax code. Therefore, understanding the 39-week test waiver provides insight into how repeated relocations can simplify a transferred employee's