Temporary job location

[THS982]

Prison guard took a temporary job in February 2011 at a location about 175 miles away. He worked at that location all year and was given a full time position in January 2012. I told him that he went there with the intention of becoming a full time employee that he could not claim temporary job location expenses. He is saying that it is a temporary job until he makes permanent in January 2012. What are your thoughts?

[MilTaxEA]

If he realistically expected the job to last less than a year, then the job would be considered temporary and the miles deductible. However, once he could reasonably expect the job to last longer than a year, the job is no longer temporary and the mileage is no longer deductible.

You probably have to take him at his word. If you think he is lying and cannot prepare his return in good conscience, then disengage and send him somewhere else.

[Edit] After rereading your post I would initially consider the mileage to be commuting unless he could prove his tax home is usually where he lives. I usually think of temporary assignment when their current job sends them somewhere else for a period of time. Actually taking a job away from your tax home? Probaby deductible if you have established that place as your tax home and expect the new job to last less than a year. I would have to dig through the IRC/treasury regs for a definitive answer. Maybe someone else knows off the top of their head...

[THS982]

I think where I am getting hung up is on the realistic expectation in that he probably would not have taken the job if he didn't think it was going to become permanent.

[dan doshan]

MilTax ... is pretty on spot. It is a facts and circumstances situation. If the job was realistically expected to be permanent then no expenses. If realistically expected to be a temporary job situation then possibly OK up to the point it became apparent that the job was going to be permanent.

Without subjecting the client to a lie detector test I guess one has to pretty much take the clients word for it. As long as you ask the appropriate questions. Also you may want to include this in your preparer notes in case something comes back on this you can at least back up you asked the client the appropriate questions. Then he can't complain to you.

Having said the above there are other factors that can come into play such as Tax Home, etc.

[geekgirldany]

I hope the original poster does not mind me asking my question as it is related.

Client moved to Louisiana to take get a new job. He lived there for less than a year. He was laid off from that job. He did not seek another one in LA because he did not like it there.

I believe his tax home was LA. Is this correct?

[taxea]

I believe the rule on temp job is one that lasts less than 11 months. You need to double check the timing. If he had worked the job for only the time allowed, left the job and then went back to it in Jan he would be able to take the expenses. You are correct in that he can't take them if the job is continuious from the beginning until it became permanent if it exceeds the alloted time.\

Also it has to be a temp location with his current employer.

[THS982]

I would agree with you that LA would be tax home as he moved there for a permanent job. I don't think the fact that he didn't like it there means anything. This whole temporary job location is very confusing and trying to explain it to clients can be very difficult.

[taxea]

I think where I am getting hung up is on the realistic expectation in that he probably would not have taken the job if he didn't think it was going to become permanent.

That is on him. He should have included that information in his decision before he took the job.

[Jesse]

I believe the rule on temp job is one that lasts less than 11 months. You need to double check the timing. If he had worked the job for only the time allowed, left the job and then went back to it in Jan he would be able to take the expenses. You are correct in that he can't take them if the job is continuious from the beginning until it became permanent if it exceeds the alloted time.\

Also it has to be a temp location with his current employer.

I believe the rule on temp job is one that lasts less than a year. A year is 12 months so were do you come up with less than 11 months?

[dan doshan]

To clarify things and also my post ... whether or not the job is considered temporary would not necessarily be whether or not the taxpayer wasn't sure he wanted the job or not. It would depend on the circumstances at the time of hiring. Did the employer hire the person with the expectation of the job being permanent. If so, then it would not be a temporary job situation. I would assume the same would be true if when the person takes the job with the expectation that it is to be permanent. If the employer hires someone with the stipulation that the job may be temporary, then so be it. But if at any point in time it becomes apparent that the job indeed is expected to be permanent then any expenses would cease.