Final answer:
Ron can deduct moving expenses for the transportation of household goods, mileage for his personal automobile at the standard rate, commissions on the new lease, and costs for settling the old lease. Non-deductible expenses include house-hunting trips and temporary living expenses. Assuming the standard mileage rate is $0.17 per mile, the total deductible amount is $4,188.
Step-by-step explanation:
To determine the amount of moving expenses Ron can deduct, we must adhere to the IRS guidelines, which typically allow for the deduction of expenses related to packing, shipping, and insuring household goods, traveling (including lodging but not meals), and mileage for personal automobile at a standard rate.
The deductible moving expenses for Ron would thus include the cost of transportation of household goods ($3,200), the mileage for personal automobile (1,400 miles, which, assuming the standard IRS mileage deduction rate applies, would need to be multiplied by that rate to determine the total deduction for mileage), commissions on the new lease ($500), and the costs of settling the old lease ($250). However, expenses for house-hunting trips and temporary living expenses are generally non-deductible.
Assuming the standard mileage rate set by the IRS for the year of the move is $0.17 per mile, Ron would calculate the mileage deduction as 1,400 miles × $0.17/mile = $238. Adding this to the other deductible expenses, we get a total deduction of $3,200 (goods transportation) + $238 (mileage) + $500 (new lease commission) + $250 (old lease settlement) = $4,188.
Therefore, based on these calculations and eligible expenses, Ron can claim a total moving expense deduction of $4,188.