Paying off Mortgage a Moving Expense?

[austin3515]

In order to get a key employee (not a 416 key employee, just an important one!) to move back in-state from a division in another state, the company has agreed to pay off his out-of-state mortgage through a bonus. Can this be considered a "moving expense" which is excludable? We checked the box to exclude taxable fringe benefits, moving expenses, etc. etc.

[Lou S.]

Probably need to ask an attorney but I think it could be argued that it is a moving expense.

[PensionPro]

The answer seems to be no according to Pub 521.

[austin3515]

521 only telss us what deductible expenses are (I took a quick look through as well). Doesn't have a lot of discussion regarding non-deductible expenses. And the definition of deductible expenses would generally be a moot point since it would not be taxable wages anyway...

And the exclusion is "moving expenses" - NOT "Moving Expenses as defined by code section 123." It seems to leave the door open for interpretation. Again starting with the assumption that we are discussing non-qualifying moving expenses to begin with (At least if your're using w-2 or current includible).

[DMcGovern]

how is the company reporting the amount on the payroll or books - as a bonus (that the employee may choose to pay off his mortgage with), or as a fringe benefit

[austin3515]

AS "moving expenses". But I want to make sure that it's not just a name...