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TITLE 26-INTERNAL REVENUE CODE (ii) the cost of a loan (but not including any amounts which represent payments or prepayments of interest), (C) the settlement of an unexpired lease held by the taxpayer or his spouse on prop- erty used by the taxpayer as his former residence, or (D) the acquisition of a lease by the tax- payer or his spouse on property used by the taxpayer as his new residence in the general location of the new principal place of work (not including amounts which are payments or prepayments of rent). (3) Limitations (A) Dollar limits The aggregate amount allowable as a de- duction under subsection (a) in connection with a commencement of work which is at- tributable to expenses described in subpara- graph (C) or (D) of paragraph (1) shall not exceed $1,500. The aggregate amount al- lowable as a deduction under subsection (a) which is attributable to qualified residence sale, purchase, or lease expenses shall not exceed $3,000, reduced by the aggregate amount so allowable which is attributable to expenses described in subparagraph (C) or (D) of paragraph (1). (B) Husband and wife If a husband and wife both commence work at a new principal place of work within the same general location, subpara- graph (A) shall be applied as if there was only one commencement of work. In the case of a husband and wife filing separate returns, subparagraph (A) shall be applied by substituting "$750" for "$1,500", and by substituting "$1,500" for "$3,000". (C) Individuals other than taxpayer In the case of any individual other than the taxpayer, expenses referred to in sub- paragraphs (A) through (D) of paragraph (1) shall be taken into account only if such individual has both the former residence and the new residence as his principal place of abode and is a member of the taxpayer's household. (c) Conditions for allowance No deduction shall be allowed under this sec- tion unless- (1) the taxpayer's new principal place of work- (A) is at least 35 miles farther from his former residence than was his former prin- cipal place of work, or (B) if he had no former principal place of work, is at least 50 miles from his former residence, and (2) either- (A) during the 12-month period immedi- ately following his arrival in the general lo- cation of his new principal place of work, the taxpayer is a full-time employee, in such general location, during at least 39 weeks, or (B) during the 24-month period immedi- ately following his arrival in the general lo- cation of his new principal place of work, the taxpayer is a full-time employee or per- forms services as a self-employed individual on a full-time basis, in such general loca- tion, during at least 78 weeks, of which not less than 39 weeks are during the 12-month period referred to in subparagraph (A). For purposes of paragraph (1), the distance between two points shall be the shortest of the more commonly traveled routes between such two points. (d) Rules for application of subsection (c)(2) (1) The condition of subsection (e)(2) shall not apply if the taxpayer is unable to satisfy such condition by reason of- (A) death or disability, or (B) involuntary separation (other than for willful misconduct) from the service of, or transfer for the benefit of, an employer after obtaining full-time employment in which the taxpayer could reasonably have been expected to satisfy such condition. (2) If a taxpayer has not satisfied the condi- tion of subsection (c)(2) before the time pre- scribed by law (including extensions thereof) for filing the return for the taxable year during which he paid or incurred moving ex- penses which would otherwise be deductible under this section, but may still satisfy such condition, then such expenses may (at the election of the taxpayer) be deducted for such taxable year notwithstanding subsection (c)(2). (3) If- (A) for any taxable year moving expenses have been deducted in accordance with the rule provided in paragraph (2), and (B) the condition of subsection (c)(2) cannot be satisfied at the close of a subse- quent taxable year, then an amount equal to the expenses which were so deducted shall be included in gross income for the first such subsequent taxable year. (e) Denial of double benefit The amount realized on the sale of the resi- dence described in subparagraph (A) of subsec- tion (b)(2) shall not be decreased by the amount of any expenses described in such sub- paragraph which are allowed as a deduction under subsection (a), and the basis of a resi- dence described in subparagraph (B) of subsec- tion (b)(2) shall not be increased by the amount of any expenses described in such subpara- graph which are allowed as a deduction under subsection (a). This subsection shall not apply to any expenses with respect to which an amount is included in gross income under sub- section (d)(3). (f) Rules for self-employed individuals (1) Definition For purposes of this section, the term "self- employed individual" means an individual who performs personal services- (A) as the owner of the entire interest in an unincorporated trade or business, or (B) as a partner in a partnership carrying on a trade or business. 71-999 0 - 78 - 15 (Vol, 7) Page 197 § 217