Martin Dawson, who resided in Detroit, was unemployed for the last six months of 2006. In January 2007, he moved to Houston to seek employment, and obtained a full-time job there in February. He kept this job for the balance of the year. Martin paid the following expenses in 2007 in connection with his move:

Rental of truck to move his personal belongings to Houston

$

800

Penalty for breaking the lease on his Detroit apartment

300

Total

$

1,100

How much can Martin deduct in 2007 for moving expenses?

  1. $0
  2. $ 300
  3. $ 800
  4. $1,100