Announcement

Collapse
No announcement yet.

Tax Home

Collapse
X
Collapse
 
  • Page of 1
  • Filter
  • Time
  • Show
Clear All
new posts
Previous template Next
    #1

    Tax Home

    I have a client that worked as a State Patrol for many years in my hometown. He then got a job 50 miles away as a Firearm Instructor. He worked there for 5 or 6 years and drove back and forth everyday. He has now been transferred to a Charleston, SC which is in a different state to do the same job. He is renting an apartment in Charleston and his family still lives here in my hometown. He comes home on the weekends.

    He is wanting to claim the apartment rental and mileage. I have been going through the scenario over and over in my mind. My thoughts are that since the Charleston Job is permanent then that is his tax home. Therefore no deductions. He does have duplicated expenses, and his family lives here.

    Can y'all give me your thoughts on which area is his tax home and which is his family home?

    Thanks
    Tags: None
    #2
    No deduction.

    See The TaxBook, page 8-10.

    Similar information in Pub 463, page 3. Especially about home away from family.
    Jiggers, EA

    Comment

      #3
      Originally posted by Jiggers View Post
      No deduction.

      See The TaxBook, page 8-10.

      Similar information in Pub 463, page 3. Especially about home away from family.
      Agreed, no deduction. Also, do not be surprised when he says that other officers have told him it is deductible and they know a preparer who will allow him to take the expenses. If that is the case, your best bet might be to give him his stuff and wish him the best.

      Comment

        #4
        Tax home is . . .

        What you did not clarify is whether he had been claiming "temporary expenses" and/or travel for the first job. Hope not. That was merely commuting, albeit a long distance. (Let me guess: he drove a Highway Patrol vehicle every day??)

        As for the new location, nothing really has changed.

        The new wrinkle is he will owe income taxes to SC (he works there!), and will also owe income taxes to his "home" state on the same wages since he/his family are still residents of that state. There would likely be some offsetting credits so as not to be doubly taxed on that income.

        And KBTS is quite correct: Most likely many will tell him he can deduct everything and/or not have to report the income to his home state.

        FE

        Comment

        Previous template Next

        Disclaimer

        Collapse

        This message board allows participants to freely exchange ideas and opinions on areas concerning taxes. The comments posted are the opinions of participants and not that of Tax Materials, Inc. We make no claim as to the accuracy of the information and will not be held liable for any damages caused by using such information. Tax Materials, Inc. reserves the right to delete or modify inappropriate postings.

        Working...
        X