Claiming employer-provided housing as personal income?

Question

My employer's client has offered to let me use a house on their property. Do I have to claim the use of this house as personal income if they don't charge my employer for using the house? Do I have to claim the use of this house as personal income if they charge my employer for using the house?

Answer 1

Would the use of this house be a deductible expense if you had paid for it? If yes, then the housing is tax-free to you whether or not the employer paid for it.

If not, then if the employer paid for the housing on your behalf, then the cost of the housing is taxable income to you.

If the employer did not pay (in cash or service or goods) for the house, then the way I see it, it is not employer provided housing.

Are you performing work for the client in exchange for the housing? If so, then the housing is taxable income to you.

But if no service is being performed for the house and no payment of any kind if being paid, by you or the employer, for the house, then there is no taxable event.