Can I deduct rent and utilities paid on a leased apartment while working out of state on temporary jobs

Asked over 2 years ago - Newport Beach, CA

I have leased an out of state apartment and pay renter's insurance and utilities on this apartment while working out of state while still paying a mortgage and taxes and insurance on my home in my resident state. I return to my resident home 1 to 2 times per year. Can I deduct the out of state rent and utilities and renter's insurance paid?

Attorney answers (3)

  1. Frank Wei-Hong Chen

    Contributor Level 20

    7

    Lawyers agree

    Answered . No, your out of state rent, utilities and renter's insurance are not deductible unless the leased property is used for business, and even so, you may only deduct only the amount used for business. See:

    http://www.irs.gov/newsroom/article/0,,id=16800...

    The information presented here is general in nature and is not intended, nor should be construed, as legal advice.... more
  2. Curtis Lamar Harrington Jr

    Contributor Level 20

    6

    Lawyers agree

    Answered . What is your out of state working situation? Contractor? Contractor servicing several clients? Do you keep client records in the out of state apartment (and thus the reason for insurance)? Do you have commercial liability insurance? Do you file a schedule C on the work income?

    These are the sort of questions that need to be asked.

    Curt Harrington Patent & Tax Law Attorney Certified Tax Specialist by the California Board of Legal... more
  3. Robin Mashal

    Contributor Level 19

    5

    Lawyers agree

    Answered . Disclaimer: The materials provided below are informational and should not be relied upon as legal advice.

    You do not provide sufficient facts. You are likely deducting your mortgage payments on the theory that the house is your primary residence. If you are spending so much time out of state, that brings into question whether your mortgage is still deductible under that theory. Regardless, your out of state living/lodging costs may be considered work expenses. I suggest you go over the facts and circumstances in detail with your CPA, or other tax advisor to protect your legal rights.

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