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TITLE 26-INTERNAL REVENUE CODE (2) Rule for application of subsections (b)(1)(C) and (D) For purposes of subparagraphs (C) and (D) of subsection (b)(1), an individual who com- mences work at a new principal place of work as a self-employed individual shall be treated as having obtained employment when he has made substantial arrangements to commence such work. (g) Rules for members of the Armed Forces of the United States In the case of a member of the Armed Forces of the United States on active duty who moves pursuant to a military order and incident to a permanent change of station- (1) the limitations under subsection (c) shall not apply; (2) any moving and storage expenses which are furnished in kind (or for which reim- bursement or an allowance is provided, but only to the extent of the expenses paid or in- curred) to such member, his spouse, or his de- pendents, shall not be includible in gross income, and no reporting with respect to such expenses shall be required by the Secretary of Defense or the Secretary of Transporta- tion, as the case may be; and (3) if moving and storage expenses are fur- nished in kind (or if reimbursement or an allowance for such expenses is provided) to such member's spouse and his dependents with regard to moving to a location other than the one to which such member moves (or from a location other than the one from which such member moves), this section shall apply with respect to the moving expenses of his spouse and dependents- (A) as if his spouse commenced work as an employee at a new principal place of work at such location; (B) for purposes of subsection (b)(3), as if such place of work was within the same general location as the member's new prin- cipal place of work, and (C) without regard to the limitations under subsection (c). (h) Regulations The Secretary shall prescribe such regula- tions as may be necessary to carry out the pur- poses of this section. (Added Pub. L. 88-272, title II, § 213(a)(1), Feb. 26, 1964, 78 Stat. 50, and amended Pub. L. 91- 172, title I1, § 231(a), Dec. 30, 1969, 83 Stat. 577; Pub. L. 94-455, title V, § 506 (a)-(c), title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1568, 1834.) PRIOR PROVISIONS A prior section 217, act Au,. 16, 1954, ch. 736, 68A Stat. 72, § 217, renumbered § 218, Feb. 26, 1964, Pub. L. 88-272, title II, § 213(a)(1), 78 Stat. 50, renumbered § 219, Dec. 10, 1971, Pub. L. 92-178, title VII, § 702(a), 85 Stat. 561, renumbered § 220, Sept. 2, 1974, Pub. L. 93-406, title II, § 2002(a)(1), 88 Stat. 958, renumbered § 221, Oct. 4, 1976, Pub. L. 94-455, title XV, § 1501(a), 90 Stat. 1734, relating to cross references concerning deduction for long term capital gains and deductions in respect of a decedent, was redesignated as section 221 of this title by section 1501(a) of Pub. L. 94-455. AMENDMILNTS 1976--Subsec. (b)(3)(A). Pub. L. 94-455, §506(b)(1), (2), substituted "$1,500" for "$1,000" following "(1) shall not exceed" and "$3,000" for "$2,500" following "lease expenses shall not exceed". Subsec. (b)(3)(B). Pub. L. 94-455. § 506(b)(3), substi- tuted "$750' for '$1,500'" for " '$500' for '$1,000'" fol- lowing "applied by substituting" and "'$1,500' for '$3,000'" for "'$1,250' for '$2,500'" following "and by substituting". Subsec. (c)(1). Pub. L. 94-455, § 506(a), substituted "35" for "50" following "at least". Subsec. (g). Pub. L. 94-455, § 506(c), added subsec. (g). Former subsec. (g) redesignated subsec. (h). Subsec. (h). Pub. L. 94-455, §§ 506(c), 1906(b)(13)(A), redesignated former subsec. (g) as (h) and, as redesig- nated, struck out "or his delegate" following "Secre- tary". 1969-Pub. L. 91-172 substantially reenacted existing provisions and extended the coverage to self-employed persons working at the new location for 78 weeks, made it a requirement that the new principal place of work be located 50 miles from the former residence, and redefined the deduction to include costs of house. hunting trips, temporary living expenses prior to lo- cating a new home, and expenses of selling an old home or buying a new one. EFFECTIVE DATE OF 1976 AMENDMENT Section 506(d) of Pub. L. 94-455 provided that: "The amendments made by subsections (a) and (b) [to sub- sees. (b)(3) and (c)(1) of this section] shall apply to taxable years beginning after December 31, 1976." EFFECTIVE DATE OF 1969 AMENDMENT Section 231(d) of Pub. L. 91-172, as amended by Pub. L. 91-642, § 2, Dec. 31, 1970, 84 Stat. 1880, provided that: "The amendments made by this section [enact- ing section 82 of this title and amending this section and sections 1001 and 1016(c) of this title] shall apply to taxable years beginning after December 31, 1969. except that- "(1) section 217 of the Internal Revenue Code of 1954 (as amended by subsection (a)) shall not apply to any item to the eitent that the taxpayer received or accrued reimbursement or other expense allowance for such item in a taxable year beginning on or before December 31, 1969, which was not in- cluded in his gross income; and "(2) the amendments made by this section shall not apply (at the election of the taxpayer made at such time and manner as the Secretary of the Trea- sury or his delegate prescribes) with respect to moving expenses paid or incurred before January 1, 1971, in connection with the commencement of work by the taxpayer as an employee at a new principal place of work of which the taxpayer had been noti- fied by his employer on or before December 19, 1969." EFFECTIVE DATE Section applicable to expenses incurred after Dec. 31, 1963, in taxable years ending after such date, see section 213(d) of Pub. L. 88-272, set out as an Effective Date of 1964 Amendment note under section 62 of this title. MOVING EXPENSES OF MEMBERS OF THE UNIFORMED SERVICES Pub. L. 93-490, § 2, Oct. 26, 1974, 88 Stat. 1466, au- thorized the Secretary of the Treasury, applicable with respect to taxable years ending before January 1, 1976, to: (1) enter into an agreement with the Secretary con- cerned under which the Secretary concerned would not be required to withhold tax on, or to report, moving expense reimbursements made to members of the armed forces; (2) permit any taxpayer who was a member of the armed forces not to include in adjusted gross income § 217 Page 198