Sch C-EZ expense?

[ldreyna]

This may be a dumb question-but tp had worked out of state for only 3 months. The earnings were around 6,000.00. He stayed at a motel . My question is--can he expense the paid rent since he had to rent to work there? Or would the IRS say that he normally he has to sleep, so it is not deductable.

Were not talking about a large amount, so would it even matter? He has no other expenses to do this work, would the IRS question his self employment with no expenses?

Any input would be helpful. What would you do? I want to deduct 50% of what paid to rent a motel. Is that correct?

Thanks,

Larry

[kcjenkins]

This is what is generally called 'temporary living expenses' for an away-from-home temporary job. Yes, it is fully deductible. And so are 50 % of his meal expenses, using the per diem amount for that location. Also mileage there and back, one time. If he came home on weekends, you do not take the extra mileage, but you can take the rent and the meals he would have had if he had stayed out of town. You need to read up on 'temporary job expenses'.

[ldreyna]

Thanks

[jainen]

>>an away-from-home temporary job<<

Nothing in the original post states that he was "away from home" or that the job meets the definition of temporary. Other likely scenarios that fit the same facts are a transient worker and a worker in a failed attempt to relocate.

[kcjenkins]

Gee, I can't imagine how 'out of state' and 'stayed in a motel' and '3 months' could make me think 'temp job'?

[jainen]

>> I can't imagine how 'out of state' and 'stayed in a motel' and '3 months' could make me think 'temp job'? <<

That's why I put up two fairly common examples of when it would not be temporary. Do you need more? If the trip was not primarily for work so he spent more time on vacation or settling an estate or hiding from the U.S. Marshall, the housing would not be deductible. Why does the original post only ask about 50% of the rent? Doesn't that make you wonder if maybe the business purpose was not more than half the trip?

[Ray in Ohio]

:scratch_head:

[kcjenkins]

If the trip was not primarily for work so he spent more time on vacation or settling an estate or hiding from the U.S. Marshall, the housing would not be deductible. Why does the original post only ask about 50% of the rent? Doesn't that make you wonder if maybe the business purpose was not more than half the trip?

No, it made me think that Larry did not understand that while only 50% of meals is allowed, all of the temp lodging is deductible. And it made me think Larry needed to read up on temporary jobs, to 1) determine for sure that it meets the test for a temp job and 2) what other things can be deducted if it does.

What it did not do was make me think of someone 'hiding from the law, settling an estate, or on vacation'. While all those things could happen, mostly a poster would mention such very relevant facts. He said it was a job, for 3 months, so that was what I answered. You, of course, get your kicks from thinking up exceptions, which is fine. Hopefully, Larry will take your posts in the spirit of good fun. :lol: