Housing for worker

[JenMO]

Farmer provides a house for his farm worker. Convenience for farmer. Is the house depreciated as a farm building, rental with no income? Or something else?

[TAXNJ]

See if....

IRS Pub 225 relates to your scenario... Excerpt:

Tenant House Expenses

You can deduct the costs of maintaining houses and their furnishings for tenants or hired help as farm business expenses. These costs include repairs, utilities, insurance, and depreciation.

The value of a dwelling you furnish to a tenant under the usual tenant-farmer arrangement isn't taxable income to the tenant.

[kathyc2]

Following article discusses it in more detail: https://www.journalofaccountancy.com...d-lodging.html

[taxea]

Could this be a barter?

[ATSMAN]

Could this be a barter?

In my neck of the woods we have a lot of tobacco and veg farmers and most of them provide some sort of housing for crop pickers who are transient laborers and almost all of them get paid in cash! I seriously doubt a laborer would consider this to be a barter.

[taxea]

In my neck of the woods we have a lot of tobacco and veg farmers and most of them provide some sort of housing for crop pickers who are transient laborers and almost all of them get paid in cash! I seriously doubt a laborer would consider this to be a barter.

Could it be that the low pay reflects a deduction for "housing"