Claim for Reimbursement of Real Estate Expenses

An advance decision was requested concerning the claim of a U.S. Customs Service employee for real estate expenses incurred incident to a change of permanent duty station. At the time of the employee's transfer, he owned and resided on an 80-acre farm with a house, garage, storage building, machine shed, and barn. He auctioned off 66 acres of agricultural and swamp land to one buyer and the other 14 acres with all the buildings to another buyer. The employee filed a claim for real estate expenses for the entire sale. The certifying officer questioned whether the real estate expenses incurred in selling the 66-acre lot were reimbursable and whether the real estate expenses in connection with the sale of the 14 acres were fully reimbursable. In a prior decision, GAO held that it is the responsibility of the agency concerned to make the initial determinations as to what portion of the real estate sold reasonably relates to the residence site and as to the amount of the claimed expenses allowable for that portion. GAO believed that the principles set forth in that decision should be applied to the 14-acre parcel containing the residence. Therefore, the U.S. Customs Service should initially make the requisite determinations in accordance with these principles and Federal Travel Regulations. GAO believed that these regulations prohibit reimbursement of the amount of the claimed expenses attributable to the sale the 66-acre parcel of agricultural and swamp land. GAO has consistently held that, when a transferred employee sells his land in two parcels, that parcel which does not contain his residence is in excess of that which reasonably relates to the residence site. The employee's claim should be adjudicated in accordance with the foregoing.