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Wallstreet Esq.
Wallstreet Esq., Tax Attorney
Category: Tax
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Experience:  10 years experience
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If I went to another state to work at a local hospital and

Customer Question

if I went to another state to work at a local hospital and attend graduate school precepting at this new states VA system ( the graduate school was online and yet in another state) and left my belongs in a storage and stayed at a hotel can I count the hotel costs as a education or business deduction? I also used the hotel room as business for my previous states registered s corp- as I was trying to do business there but had to still register in the new state but was checking things out can I count part of the hotel bill as business expense? Lastly I took these classes online and it required to pass that I attended 2 workshops for this graduate education in the schools state on campus - can I count the hotel and travel there yet another state under education deduction for taxes?
I was still a resident of the first state, working and doing graduate school practicum precepting there and yet had to fly to the online school for classes. My new CPA is hard and telling me that the flying and hotel for the online class at the online home campus is not decuctable. And she is telling me that I can't claim any business use of the hotel room since I had not registered my business in that state, and that I should have gotten a home or rented an apartment instead.
residency is of question as the job gave a minor amount to help get there but not enough to move all my belongings - 1-2000 dollars just enough for gas of 2 cars and a scant belongings - she says this is stating I was becoming a resident - is that true.
Submitted: 7 months ago.
Category: Tax
Customer: replied 7 months ago.
I am waiting for an answer by the computer as I am working on some taxes. thanks
Expert:  emc011075 replied 7 months ago.

Hi. My name is ***** ***** I will be happy to help you.

Your tax home (residence for tax purposes) is where you work. You can keep residency in state A but if you move to state B to work on permanent basis (not a temporary assignment), state B becomes your tax home. Which means you cannot deduct any employee related business expenses. The same apply to your scorp. You are employee of your own corporation and your tax home is where you work, regardless where the actual corporation is located.

And finally, if you worked on your graduate degree (continuing education or a degree not required by your employer) you cannot deduct room and board or traveling back and forth as education expense.

Expert:  emc011075 replied 7 months ago.

Here are qualified education expenses per IRS:

Note the section Expenses that Do Not Qualify

Expert:  emc011075 replied 7 months ago.

Tax home as described by the IRS:

"Generally, your tax home is the entire city or general area where your main place of business or work is located, regardless of where you maintain your family home. For example, you live with your family in Chicago but work in Milwaukee where you stay in a hotel and eat in restaurants. You return to Chicago every weekend. You may not deduct any of your travel, meals or lodging in Milwaukee because that is your tax home. Your travel on weekends to your family home in Chicago is not for your work, so these expenses are also not deductible. If you regularly work in more than one place, your tax home is the general area where your main place of business or work is located."

"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."

Expert:  emc011075 replied 7 months ago.

Any questions?

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