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Own a home without a mortgage payment: Is it still a Tax home?

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by YomiAmour YomiAmour (New) New

Hello everyone, I had a question regarding travel nursing and having a tax home if you have any knowledge or experience with our situation. I haven't been able to find any information on this specific case.

My husband is an RN and we are planning to take on travel assignments with our 2 children within the next couple of years. We are thinking of purchasing a condo/manufactured home in full so that we will have a home base to come home to in between assignments. My question to you all is if we have no mortgage payment due to it being paid in full, will it still qualify as a tax home because of the property tax, routine maintenance, homeowners insurance, etc? Thank you!

Atl-Murse

Has 1 years experience.

Yes it will

It's not about making a mortgage payment; it's about owning the home.

Yes. You are incurring expenses maintaining your tax home residence. Ownership by you, the bank, or a landlord is not a relevant factor.

NedRN said:
Yes. You are incurring expenses maintaining your tax home residence. Ownership by you, the bank, or a landlord is not a relevant factor.

You're right, of course; I should have said "maintaining" the home is the significant factor rather than "owning" the home. A rental property can just as easily be a tax home.

There is this whole theory of duplicated expenses when you are working away from home to make a legitimate tax deduction (or accept "reimbursements" like a housing stipend from an agency). However I believe there can be unusual circumstances where they don't apply.

Picture a 26 year old RN who has lived with parents her entire life, including college and staff jobs. Her parents refuse to accept rent. Tax home? I'd argue yes. Her parents are effectively bartering rent for the pleasure of her companionship and family bliss.

On the other foot, the same 26 year old who has been living independently for years who moves back in with her parents at the same time she becomes a traveler will have a much tougher argument for a legitimate tax home without being able to document paying a fair rent.

Kooky Korky said:
Have you checked IRS.gov? Or talk to a CPA or tax preparer.

You forgot to suggest Google.