Claim for Relocation Expenses Involving Tax Credit Loss

B-194860: Oct 15, 1979

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An Air Force employee was allowed an income tax credit for the purchase of a newly constructed residence, but was required to repay the credit when transferred less than 3 years later. She then claimed the tax loss as a relocation expense. By law, however, a transferred Federal employee is entitled only to reimbursement for brokerage fees and other expenditures reasonably necessary to consummate a real estate transaction. Therefore, the tax credit loss did not constitute a proper relocation expense and the claim was denied.