I am moving closer to the clients office on a new contract. I signed a lease recently but am thinking if I can have my employer pay the rent directly. Please advice if the employer will have any tax issues to do so.
2007-08-18 06:23:14 · 8 answers · asked by RG 1 in Business & Finance ➔ Renting & Real Estate
Would the rent still be counted as part of my gross income if the employer rents the place as a guesthouse? Please advice.
2007-08-18 06:48:08 · update #1
there would be no tax issues for them - but any rent paid would be considered income to you, so you will have to pay taxes on the rent paid
2007-08-18 06:28:44 · answer #1 · answered by rlloydevans 4 · 1⤊ 0⤋
That would be considered part of your salary. It would be subject to withholding of tax and would be deductible to the employer as wages paid to you and would be taxable income to you.
The only exception to this would be if you lived on your employer's property as part of a requirement of the job, such as an apartment complex manager or on-call maintenance staff. In that case the fair market rent would NOT be income to you. The employer would not get any deduction, however there would be no income for the unit so that's where the employer's tax savings would come from.
2007-08-18 06:30:28 · answer #2 · answered by Bostonian In MO 7 · 0⤊ 0⤋
I don't know why every one is saying that if the employer pays your rent it's taxable income, well it's NOT true. I worked for a large contractor for many years and they would pay our rent on all out of town jobs (sometimes for a year). If they lease you a truck you dont have pay taxes on it. If they give you a company credit card to buy gas or food your don't have to pay any taxes. The company gets to right all of this stuff off.
2007-08-18 12:49:10 · answer #3 · answered by Leo F 4 · 0⤊ 1⤋
The value of the apartment will be considered income to you and is taxable. Employer may be able to take a salary deduction for this, but will pay Unemployment and SS taxes on it.
2007-08-18 08:18:46 · answer #4 · answered by Anonymous · 1⤊ 0⤋
no longer something unlawful approximately paying somebody else's hire and utilities as area of their repayment (non-money pay), as long as that guy or woman comments the IMPUTED earnings such money generate on their tax return. The recipient of the money ought to record the money and the giver would deduct if this may well be a valid business business enterprise rate to preserve the worker. The payer ought to offer a sort to the recipient detailing the finished of annual money.
2016-12-12 05:51:06 · answer #5 · answered by ? 4 · 0⤊ 0⤋
WHY would your employer PAY for you a place to live?
I wouldn't even ask your boss....unless you want them to look at you as if you lost your mind.
2007-08-18 07:12:55 · answer #6 · answered by Expert8675309 7 · 0⤊ 0⤋
You might, but be aware that any monies they pay for you are put towards your gross income, and you would owe taxes on it.
2007-08-18 06:33:07 · answer #7 · answered by Anonymous · 1⤊ 0⤋
the only thing you can do is ask , if you dont ask you wont know , and you definitly wont get
2007-08-18 06:27:15 · answer #8 · answered by DSV 6 · 0⤊ 0⤋