RentToOwn-HouseFinder.com

Is rent deductible if you own a home, but must rent for work?

I currently own a home in Northern CA, but for job purposes have to rent in Southern CA. Is any of my rental payments deductible?

Public Comments

  1. it should be, call your state/county and ask, or ask your landlord, they should know for sure, if not, have someone do your taxes and ask them.
  2. Assuming you're a W-2 employee, just to keep things simple, commuting costs are non-deductible. If you rent a house for your convenience, i.e., to shorten your non-deductible commute, then that cost is not deductible. If your employer pays for your housing, that is generally taxable. If your employer pays for your housing, and further requires that you occupy this housing as a condition of your employment, then that is not taxable. So, if you somehow worked it out with your employer that they pay your rent, and require that you live part-time at that residence for THEIR convenience, as a condition of your employment, then you may be able to exlude that from income. If you're a non-employee consultant (1099 earner), then travel and hotel costs to visit clients are business expenses. If it makes good economic sense to rent year-round rather than to check into a hotel 5 days a week, then you might can establish that it's ordinary and necessary for your business and deduct it. I would, but then again I'd research it a bit more to double check.
  3. Not for federal. The feds see it as your option, that you could just move to Southern CA instead of maintaining both residences. California might have different rules for state taxes.
Powered by Yahoo! Answers