Certain relocation costs are expressly unallowable. These include:

a loss on the sale of a residence

mortgage principle payments on the old residence

payments for employee income or social security taxes incident to reimbursed relocation costs (so-called tax gross-ups)

payments for job counseling and placement assistance for spouses and dependents who were not contractor employees at the old location

costs incident to furnishing loans to employees or arranging for below-market mortgage loans.

Also unallowable are brokers’ fees and commissions, litigation costs, real and personal property insurance, mortgage life insurance, owner’s title policy insurance when such insurance was not carried by the employee on the former residence and property taxes and operating or maintenance costs related to acquiring a home in a new location.

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