Corporate Housing Reimbursement

[Cynthia75]

I am relocating to Seattle for a new job. Since my house in Texas has not sold, my company has agreed to pay $2,500 a month for a lease on a home for my family in the Seattle area. Instead of the company paying out $2,500 plus taxes so that the net I receive is $2,500, can I just expense the $2,500 rental payment each month and have my company reimburse me just like I do my hotel stays and flights up to Seattle now? That way it doesn't go into "my income".

 

[Michael Wechsler]

That's a very good question. However, the potential problem probably revolves around whether paying your rent for your entire family is a legitimate business expense and also how your company classifies this payment. I'm not a tax lawyer but, if I remember correctly, unless you want to take a chance and take liberties, you may have issues if get audited. Technically your home for your children is not a business expense if you know what I mean. In theory, I'd deduct my entire rent and charge it to my business but tax law says you only get to charge off the percentage of the home/apartment actually used for the business.