The oil fields of North Dakota

[Crackerjack]

A new client went to North Dakota and earned $93K working in the oil fields. He pays $800/month to park his travel trailer in a "man camp" out there. The job is a permanent job and he plans to stay there 3 years. He's already been there 13 months. Wife and kids stayed back here in Wisconsin.

I had to tell him he could not deduct his mileage and housing in ND because of the one-year rule.

Then to top it off, I had to tell him that he owed $4,000 to Wisconsin ($4,800 Wisconsin tax minus $800 credit for tax paid to North Dakota) because he hadn't taken sufficient steps to abandon his Wisconsin domicile and establish a new domicile in North Dakota. Plus, he really intends to return to Wisconsin.

He had a little trouble understanding how his "tax home" could be different than his state of legal residence, especially since both rules are working against him.

It's hard to deliver bad news. But I did the right thing, didn't I?

[WITAXLADY]

let me know how this goes.. I have one Fri

[Crackerjack]

I told them they could get a second opinion if they want. They are going to talk it over.