The proposition that indirect moving expenses paid for by the taxpayer's employer are income to the taxpayer is well settled. Willis B. Ferebee, 39 T.C. 801 (1963); Ernest A. Pederson, Jr., supra; William A. Lull, supra; Norvel Jeff McLellan, 51 T.C. 462 (1968). Decision will be entered under Rule 50.
The Court declined to follow the Schairer case. In Willis B. Ferebee, 39 T.C. 801 (1963), it was held that the payment by the taxpayer's employer of the real estate sales commission on the sale of his residence when moving to accept a new job at a different location, was taxable as compensation to the employee. The Bradley and Ferebee cases concerned new employees, while Schairer had been an employee for several years.
‘If the employee is forced to change the location of his home for the convenience of his employer as an alternative to being dismissed, the situation may lose the aspect of personal expense and come under the familiar rule exemplified by such situation as the cost of education to retain an existing job as contrasted with obtaining a new one, (3) or the cost of room or meals where an employer and not the employee insists upon the employee's location.’ Opper. J., concurring in Willis B. Ferebee, 39 T.C. 801, 804 (1963). There are certain objective facts surrounding the move which smack of a promotion, a move entered into primarily to benefit the petitioner.
‘ Whether the Commissioner should, by ruling, exclude from income that which by statute is includable therein, is not before us here, nor has it been before this Court or the other courts in other cases decided since Rev. Rul. 54-429, 1954-2 C.B. 53, became effective. The Commissioner has permitted the exclusion from income of reimbursement of moving costs in accordance with his ruling. Whether we approve of the ruling or not (see Judge Opper's concurring opinion in Willis B. Ferebee, 39 T.C. 801, 804 (1963), involving reimbursement of moving expenses to a new employee), the time has come to cease attempting to follow it to its logical conclusion in deciding cases involving claimed deductions or reimbursements to which it does not grant exclusion from income. In accordance with Light v. Commissioner, supra, and England v. United States, supra, I would hold that the reimbursement here in issue constitutes income to petitioner and that the amounts of the expenses for which the reimbursement was received are not deductible.
Under the circumstances, we must decline to follow Schairer, * * * In Willis B. Ferebee, 39 T.C. 801 (1963), we held that an amount paid by an employer to reimburse his employee for the real estate commission paid on the sale of his home at the location where he was previously employed by another was income to the employee. Petitioner attempts to distinguish cases in which a new employer made the reimbursement of the loss from the sale of a house or of selling commissions from the situation in which the reimbursement is made by an old employer.
Light v. Commissioner, supra. Cf. Willis B. Ferebee, 39 T.C. 801 (1963). If amounts expended by a taxpayer in moving from one permanent post of duty to another are not personal expenses, they are for the purpose of the taxpayer's business as an employee since the cause of the move is business requirements.