Can I deduct the rent that I paid for an apartment?

Question

Last year, I was working out of town (200 miles away from home) as a regular employee; I was renting an apartment and I wasn't getting paid per diem. Can I claim that money as an expense?

I wasn't transferred; the job was offered on that location and my family didn't want to move to that town.

Answer 1

Not wanting to move there sounds like it was a personal choice, so wouldn't be deductible.

Answer 2

I am assuming that your company transferred you there temporarily, and that you are not an independent contractor. If this was a permanent transfer and you subsequently changed jobs, then the following answer will not work.

It would be an unreimbursed business expense to be claimed on Schedule A of your 1040. Beware, that there is a 2% limitation that gets deducted out of it. Let's say you had 100,000 in AGI (adjusted gross income) last year, and you paid 10,000 in rent. Your deduction for unreimbursed business expenses would be 8,000 (10,000 - 100,000*2%). It is pretty unfair for the IRS to disallow 2%, but who ever said taxes were fair? These types of situations can be complex. I suggest you take your info to a CPA, and do not do you own taxes this year. A CPA will save you more in deductions than you would save doing the return yourself.

If you are an independent contractor, then claim it as a normal business expense. There is actually a place on the Schedule C for out-of-town business expenses. You would get a deduction for the full amount and there would not be any limitation.

Answer 3

Not unless the move "out of town" was supposed to be temporary (ie. supposed to last under one year).

If your company transferred you permanently or you moved for a new job, you can not deduct the apartment rental.

Answer 4

Only as a Form 2106 "Employee Business Expense" - but only if you itemize.