Is there any requirement that for any given day the meals and incidentals rate and the lodging rate be for the same location? If so what would you do if there were two or more locations on the same day? The taxpayer in my two state solution thread lodges in Ohio to save money when he is working in Kentucky.
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Does this mean he has to file income tax returns for both states? Perhaps an intereseting nexus quesetion for someone.
Seriously, is your TP an employee? If so, it may be appropriate to average the two figures if they are different. I suppose you could break it down by hours in one state vs. the other.
If TP is self employed, or not being reimbursed by his employer, then actual expenses must be used for lodging at least. See our TTB 8-12, right column, bottom half.Friends double; family triple. Don't buy an audit for yourself. If someone has to go to jail make sure it is the client. Remember it is only taxes, nothing important. -
Ty
I did not realize that self employed as this guy is in KY has to use actual expenses for lodging.
Yes he both works in and telecommutes into KY for about two thirds of his income. One third of his and all of hers are NC Sourced. It's very clear to me that he has to file something with KY.Comment
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