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Is Rent tax deductible Locum expense ?

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  • Is Rent tax deductible Locum expense ?

    Hello All

    I am contemplating  to relocate from FL to NYC for 6 months to 1 year hospitalist position.

    All of my income will be 1099 and locum company will be paying me flat hourly rate for the work done and WILL NOT  cover housing traveling or food expenses.

    One of the Locum websites explains that if physician is contracted  outside of his state of residency for less than 1 year rent expenses are claimable as work related expense and tax deductible.

    I wonder if anybody has personal experience and if this indeed might be the case.  As rent is one of the biggest expenses in NYC having this item tax deductible would make this work offer very attractive.

    If so I would focus on being contracted for 6 months instead of 1 year in order to take advantage of this deduction.



  • #2
    Is Florida going to continue to be your home state for income tax purposes? Do you currently own or rent your home in Florida? Will you be returning to Florida after the 6 months or one year position as a Hospitalist?

    Lawrence B. Keller, CFP, CLU, ChFC, RHU, LUTCF


    • #3
      I own Realestate in Florida  and florida is and will be my home state, I will be going back to Fl at least once a month. My work is Mon-Fri so I have to rent a place in NYC

      However I believe that you pay taxes on the income in the state where you made the income ? no ?

      question I have is if under this conditions NYC rent can be tax deductible if contract is for less than 1 year

      and yes after a year I plan on going back


      • #4
        Yes, the general IRS rule is that, for less than 1 year, your work is considered "temporary" and you can deduct living expenses. The facts and circumstances matter, though, and it is the intent that is considered, rather than the actual results. So, for example, if your intent was to work less than 1 year and move back to your primary job and you had to stay over an extra month, then your living expenses would still be deductible. However, if your "intent" was to move to NYC and you stayed only 6 months then decided you didn't like the big city and moved back, your living expenses would not be deductible.

        The good news is that you can also deduct 50% of your meals and entertainment while away, along with travel around the city, trips to return home, and more. You can deduct actual expenses or a "per diem". For more, read the section on pg 4 of Pub 463, Temporary Assignment or Job. If you work as a W2 employee, expenses will be limited to amounts over 2% of your AGI and you must itemize.

        I strongly recommend you work with a CPA experienced in this area for any years affected by your temporary work.

        Our passion is protecting clients and others from predatory and ignorant advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087