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!
Sep 2, '16
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.
Sep 2, '16
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.
Sep 8, '16
Thank you! That was very helpful!
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