Questions about reestablishing a tax home.

[Trickster122]

I have an apartment that I have been renting over 2 years now and have everything in place for it to be my tax home. I'm on my 2nd travel assignment and i now find myself in a position that I may have to give up that apartment. I need some specfics in reguards to establishing a new tax home. Such as could I use my parents address back home in the same state if I put some of the bills there in my name. Or if I were to move out of state, would that cause a problem. If i recall I have to be at my tax home at least 3 months out of the year in addition to utilities and such. In addition to not staying at one facility for over a year traveling or that residence gets called my tax home and I get picked apart for taxes.

[NedRN]

I would recommend reading some of the articles on tax home on PanTravelers or TravelTax. Unfortunately, there are no articles on starting a new one. There is no requirement to spend three months a year at your tax home, only to "return frequently" according to the IRS. You will be returning frequently as a matter of course to a real home of course, at least once a year. An address of convenience such as a parent's home that happens at the same time as losing your previous tax home is unlikely to fly in an audit.

Purchasing a home and making it your nexus of operations is pretty strong. So is taking a permanent job in a new area and working for a while, or perhaps staying per diem. For other scenarios to change your tax home, I would consult TravelTax directly for guidance. He doesn't charge for phone calls or emails.

Finally, you could just bail and be itinerant (without a tax home). Everything taxed and no worries about the IRS or the finances of keeping up a tax home. Taking (so-called) tax advantage is worth about $10,000 a year. If rent and other tax home expenses approach that, there is little reason to keep it. If you purchase a home, the tax advantage will help you build equity, a built in savings plan that means a tax home is worth it for the built in savings plan.