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Mark Taylor
Mark Taylor, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 966
Experience:  Certified Public Accountant
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WE WERE TRANSFERED TO RENO FOR WORK,THE COMPANY PUT US IN AN

Customer Question

WE WERE TRANSFERED TO RENO FOR WORK,THE COMPANY PUT US IN AN APARTMENT THE SINK OVERFLOWED AND THE COMPANY MADE US PAY THE $5000 FOR THE DAMAGE
THEY DID NOT TAKE OUT THE PROPER INSURANCE WHEN THEY RENTED IT,
IS THIS TAX DEDUCTABLE FOR OUR PERSONAL TAXES
Submitted: 1 month ago.
Category: Tax
Expert:  Mark Taylor replied 1 month ago.

Hi, my name is Mark. I will be happy to help you with your questions. Please give me a moment to prepare your response.

Expert:  Mark Taylor replied 1 month ago.

Are you still working for the company in Reno?

Customer: replied 1 month ago.
NO BUT AM SDTILL WORKING FOR THE COMPANY THAT SENT ME THERE
Customer: replied 1 month ago.
JUSAT WRITE YOUR ANSWER
Expert:  Mark Taylor replied 1 month ago.

I have no problem with writing my answer. So when you were put up in an apartment did you expect the assignment to last more than a year?

Customer: replied 1 month ago.
NO ABOUT 4 MONTHS
Expert:  Mark Taylor replied 1 month ago.

If you expected the assignment to last under 1 year you would be able to claim temporary living expenses. Temporary living expenses include hotel lodging (or apartment rent for longer stays), meals, and local transportation. Meals may be estimated using federal per diem rates.

Are you reimbursing the company or the apartment for the $5,000.

Customer: replied 1 month ago.
WE PAID THE 5000 TO THE APARTMENT
Expert:  Mark Taylor replied 1 month ago.

I believe that you could make a good case that the $5,000 was a rental expense. Similar to if you put a deposit down for an apartment and it is withheld for damages.

Expert:  Mark Taylor replied 1 month ago.

I am assuming that you are a W-2 employee. You would report temporary living expenses on form 2106. These expenses would flow to Schedule A other deduction subject to a 2% AGI limitation. Let's assume that your Adjusted Gross income is $100,000. If the $5,000 is the total amount listed on form 2106 you would subtract $2,000 (2% of AGI). So you would receive a $3,000 itemized deduction. You would only receive a benefit if you itemize.