Can I rent out my travel nurse tax home and still receive a housing stipend?
The short answer is YES. However, there are additional considerations you should be aware of if you are attempting to use the tax home as a qualifier for ‘duplicated expenses’ for tax-free stipends. If you are receiving tax-free housing stipends, you need to have a residence available for personal use in the area of your tax home. Once you have rented out your house, it is no longer your residence but a business property.
ADDITIONAL TRAVEL NURSE TAX INFORMATION
As a Travel Nurse, Can I rent out my tax home and still receive housing stipend?
Travel nurse tax home: Understanding the tax home can be very daunting. There are several articles on this topic, and it’s always recommended if you have questions, contact the expert: TravelTax
According to TravelTax:
Generally, you need to have a residence available for personal use in the area of your tax home. Once you have rented out your house, it is no longer your residence but a business property. However, here are a few options if you get the urge to become a landlord.
- You rent it out and lease other accommodations somewhere in the same metropolitan area for yourself. This essentially turns your ex-residence into a business venture, regardless of profit or loss.
- You rent it out but retain a portion for personal use, NOT just storage. (This could be done in the case of an in-law apt or renting to friends/family who you know well enough to stay at the house in between assignments.)
- You rent it out as a vacation rental. This is great for those who live in tourist areas. You are allowed to rent it out completely for part of the year while you go off on assignment. Because the lease is for less than a year, and you are occupying it the rest of the time, it qualifies, and you can still keep your reimbursements tax-free.
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