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Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 28084
Experience:  Taxes, Immigration, Labor Relations
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My primary residence is in Texas but am taking a new job in

Customer Question

My primary residence is in Texas but am taking a new job in California, which I plan on renting an apt, can I deduct any portion of the rent in California pertaining to my new employment?
Submitted: 11 months ago.
Category: Tax
Customer: replied 11 months ago.
I will be working full time there, but am not changing my primary residence in Texas. My wife will still be residing in our primary residence which is in Texas
Expert:  Lev replied 11 months ago.

Yes - all your statements are correct - and deductions are allowed for all travel expenses - if that is a temporary assignment to a different location.

The key in such determination is temporary -

According to the IRS - you must determine whether your assignment is temporary or indefinite when you start work. If you expect an assignment or job to last for 1 year or less, it is temporary unless there are facts and circumstances that indicate otherwise.

So - if that is a temporary assignment - you may deduct Per Diem, lodging and other travel expenses.

You may refer to the IRS publication 463 -

http://www.irs.gov/pub/irs-pdf/p463.pdf

page 5 - Table 1-1. Travel Expenses You Can Deduct

However - if that is an indefinite job assignment - you tax home is changed - and NO travel travel expenses are deductible - but in this case you might be able to deduct one time moving expenses.

Customer: replied 11 months ago.
I expect a new job (with a different company) within 1 year, so does this count as temporary? However if they extend the employment after 1 year (if I take the lodging deduction) and if I do not take any "lodging deductions" for the next year will have that any tax complications for the previous year?
Expert:  Lev replied 11 months ago.

expect a new job (with a different company) within 1 year, so does this count as temporary?

- you must determine whether your assignment is temporary or indefinite when you start work. If you expect an assignment or job to last for 1 year or less, it is temporary unless there are facts and circumstances that indicate otherwise.

If circumstances are changed AFTER you start work - it is possible that temporary assignment converted to indefinite. In this case starting the dale the assignment is changed - no travel expenses may be deducted.

But the fist determination is made WHEN you start working.

Expert:  Lev replied 11 months ago.

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