Any tax advice for traveling spouses

ronchelednik · Mar 28, 2015

If in a travel assignment and your renting out your home, your tax advantage is removed for your no longer a resident to that home and state and you are receiving income for that home. The money you receive for rent is income and you stipend money from traveling will also now be taxable. The government won't allow you to to have to have your cake and ice cream sort of speak because your no longer a resident to that home. Your better off not renting your home but have a "caretaker" take care of your home. It's sort of the same thing as renting but their is a big different. A caretaker is not a renter. A caretaker is their to protect and maintain your investment, your home.

The key is "not" to make a profit. If you have a mortgage let's say $900.00 including property taxes and you pay additional $100.00 for water a sewage then a couple of other expenses so now that monthly cost is $1,250.00 to your home. You you bring in a caregiver and charge them lets say $1,240.00 for room and board while they are caring for your home by providing security and making sure your plants are watered. Since your expense exceeds your intake it's not tax. Another benefit is if the contract is properly drawn up, your caretaker is not protected like a renter. You don't have to worry about any long term rent agreements or if not receiving rent and having to go through the courts taking months to have them removed costing you 1,000's. A caretaker contact can be broken with just a 48 hour notice and they must remove themselves from the property or they would be trespassers and be prosecuted to the fullest extent of the law. All of this would be in the contract for the caretaker. The key to make the caretaker work is you are to leave your main residence furnished and the caretaker is not to bring in any furniture. Check with a knowledgeable accountant.

NedRN · Mar 28, 2015

Another way to have your cake and eat it to is roommates if your house is roommate appropriate. If there is a bedroom that is exclusively yours and you can return to at any time, you have maintained your tax home. Big benefits for all parties: someone to look after the place and sort your mail, and a whole house for the roommate at a share price.

One other thing I don't know much about is a short term vacation house rental of 3 to 6(?) months a year also preserving your tax home status. You can find out more about this option on TravelTax. Not an option I would want personally without a property manager.