Renting a room--count as tax home?

  1. 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!
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    About Vegan_RN, BSN

    Joined: Sep '09; Posts: 81; Likes: 83
    RN, BSN; from US
    Specialty: 7 year(s) of experience in Dialysis, Facility Administrator

    3 Comments

  3. by   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.
  4. by   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.
  5. by   Vegan_RN
    Thank you! That was very helpful!

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