Published Oct 13, 2016
8-ball, BSN
286 Posts
Ok so I am thinking about selling my tax home. Issues with mice, things breaking and people who said they would take care of things slacking in thier responsibilities. My brother in law said he would rent to us. He has a basement with a seperate entrace and it actually has its own address. We lived there and rented from him for 6 months prior to buying our house. My question is what are the issues with changing your tax home? Would this be a red flag for the IRS in any way. Also utilities would be included in rent is that an issue at all? I just want to make sure I am no screwing ourselves. I really dont want the hassel of the house anymore its becoming a lot of work for us. I was going to offer my uncle to live in our house rent free but believe it or not he turned us down...Who does that? Rent free, I would have jumped on that. Oh well. Any thoughts?
NedRN
1 Article; 5,782 Posts
As a non expert, I believe you are OK with your plan. But do get a free consult with TravelTax to confirm as there may be some things to do right or wrong. Since this shift did not coincide with you becoming a traveler, it is difficult for me to see any IRS issues. Even fewer issues if it is in the same general area as your house. You may need to fudge housing questionnaires for the first year from agencies to insure proper taxation. Legal as there is no intent to defraud.
Thanks NED, I have a call out to my tax guy who has worked with travel nurses for over 15 years, but I may call TravelTax as well. I was lucky to find a good tax guy.