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Tax.appeal.168
Tax.appeal.168, Tax Accountant
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I rent a house in Houston in lieu of staying in a hotel. My

Customer Question

I rent a house in Houston in lieu of staying in a hotel. My stay in Houston during 2015 was 8 months. In 2016 I will rack up another 3 to 4 months. My principle tax home is Dallas. Can I claim my rent as a Schedule C business expense?
Submitted: 11 months ago.
Category: Tax
Expert:  Tax.appeal.168 replied 11 months ago.

I take it that you rent the house in Houston because you have a business contract there. The following applies as it relates to working away from the normal tax home. SEE BELOW:

You can deduct travel expenses paid or incurred in connection with a temporary work assignment away from home. However, you cannot deduct travel expenses paid in connection with an indefinite work assignment. Any work assignment in excess of one year is considered indefinite. Also, you may not deduct travel expenses at a work location if you realistically expect that you will work there for more than one year, whether or not you actually work there that long. If you realistically expect to work at a temporary location for one year or less, and the expectation changes so that at some point you realistically expect to work there for more than one year, travel expenses become nondeductible when your expectation changes.

REFERENCE SOURCE:

https://www.irs.gov/taxtopics/tc511.html

As mentioned above, if the work assignment in Houston is expected to last for more than a year, you are not allowed to claim the rent. Let me know if I can be of further assistance to you regarding this matter.

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