Temporary Relocation

[LisaAnn]

Some comfirmation is needed for this scenerio:

Taxpayer worked at a temporary 9-month assignment in another state (it was always meant to be 9 months no more not less); employer paid a $10,000 relocation fee and $2,000 in meal allowance that was included on W-2 as gross wages and taxed.

Taxpayer decided to rent an apartment instead of staying in a hotel room.

Taxpayer can deduct on 2106:

1) cost of apartment rental, electric, heat, and cable as lodging?

2) standard per diem meal allowance? 5 work days?

3) mileage deduction to/from tax home on days off/weekends?

And since the taxpayer owned a home in their tax home state........mortgage and real estate taxes are still deductible on Sch. A?

Am I in-line with this? Missing anything?

Thanks so much!

[LisaAnn]

Did anyone ever have this scenerio?

Thanks again!

[jainen]

>>Am I in-line with this?<<

Yes.

>>Missing anything?<<

No.

>>Thanks so much!<<

Okay.

[LisaAnn]

Thanks Jainen.

[joanmcq]

No mileage home though if it was cheaper to stay in town. Since he rented an apartment, it's cheaper to stay in town.

[kcjenkins]

Joan is correct, but left off something. Since he is assumed, for tax purposes to stay over the weekend, you take the per diem for all 7 days. And mileage to and from home once.

[LisaAnn]

Thanks for clarifying.

Everyone is always so helpful on here. When you're a one-person office it's nice to have the back-up when things seem cloudy.

[kcjenkins]

That is what we try to do.