Temporary work location

[BP.]

It's about Tax Home.
He took a job out of state 6/1/10, expecting it to be temporary.
Maintaining two residences; family still here.

Twenty-two months later and the set-up is the same. He still searches for work here.

No longer temporary after one year. I believe his tax home is now the job location.

Pub 463:

If ...work...initially is ...expected to last 1 year or less, but at some later date employment is expected to last more than 1 year, that employment will be treated as temporary until your expectation changes. It will not be treated as temporary after you determine it will last more than 1 year.

So, by the time 1 year rolls around, the expectation must change that it will last more than 1 year.

My question is, would expenses be deductible for part of 2011, up to the point where the expectation changes from temporary?

[taxea]

The only thing affected is the time factor. The fact that the "temp" location exceeded a year negates the bulk of the expenses he could have taken. He cannot allocate the portion that was used for the first 12 months of the job. The "temp job" factor was void once he exceeded the time limit that made it temporary.
It does not change his home. If he maintains the original abode and the family still resides there and it was not his intention to move to the temp job site then his home remains the same.

[AJsTax]

The short answer is yes.

It's about Tax Home.
He took a job out of state 6/1/10, expecting it to be temporary.
Maintaining two residences; family still here.

Twenty-two months later and the set-up is the same. He still searches for work here.

No longer temporary after one year. I believe his tax home is now the job location.

Pub 463:


So, by the time 1 year rolls around, the expectation must change that it will last more than 1 year.

My question is, would expenses be deductible for part of 2011, up to the point where the expectation changes from temporary?

The temporary work location and related expenses is in effect until the job location is expected to last more than a year or in fact does last more than a year. So until the day he finds out that the location will last more than a year it is deductible, after that date it becomes his TAX home.

[BP.]

The temporary work location and related expenses is in effect until the job location is expected to last more than a year or in fact does last more than a year. So until the day he finds out that the location will last more than a year it is deductible, after that date it becomes his TAX home.

Ok, thanks! That meshes with how I was seeing it. I have since realized that he'll probably have to file as a resident of the state he has been working in - Mass.