Renting a room--count as tax home?

[Vegan_RN]

Hi, everyone, I am a rather new travel nurse looking to stretch my legs and see the world. If I rent a room from a friend and pay regular rent, have voters registration, car registration and license from that town/State, does this count as a tax home?

Thank you for any input!

[NedRN]

Yes. The room has to be for your exclusive use. If you had abandoned your previous tax home, or it was in a different area, I would suggest consulting TravelTax to make sure it is solid - it can be tricky. Maintaining your tax home and not making expensive mistakes, like working in the same general area over a year, can also be tricky. For that, you can read up on PanTravelers and TravelTax about common pitfalls. Sounds like you have the general idea though.

[NedRN]

I should add that TravelTax states that the rent should be at a fair market price. I disagree, there is nothing wrong with getting a good deal although the IRS will be suspicious if they find out you did that from friends or family (since you could easily have a completely sham arrangement). However, I will not be giving expert testimony at your audit! Anyway, I believe a fair market price for an often away roommate is far less than one who is in your face every day.

As counterpoint, I will say that almost any reasonable house share annual amount, at least in the Midwest, is far less than the annual tax savings you will enjoy as a traveler with a valid tax home.

[Vegan_RN]

Thank you! That was very helpful!