IRS Allows Cheaper & Better Travel Deductions

Hello June!

Thank you for shipping your book that fast.

I began reading it and had a question on lodging expenses. I have a computer programming contract in NYC and travel there every week from Philadelphia. On weekends I usually go back home. At the beginning I stayed at the hotel but later I found that renting an apartment was more convenient and a bit cheaper alternative. So, I rented the apartment on the month to month basis but now not sure on how (if it is possible at all) to deduct the rent expense? Should I calculate the average price per day and deduct days I go back home from the total number of days?... Any ideas?...

For my meals, I am planning to use per diem and I calculate by multiplying on days I am actually there in NYC. Per www.gsa.gov site for Manhattan, it is $64 for full days and $48 for the first and last days.

Thank you.
Dmitriy


Dear Dmitriy,

Good question. And this situation is not covered in my book Self-employed Tax Solutions.

We know the IRS regs don't always make sense but just because it's cheaper and better doesn't rule out a deduction. Assuming you are allowed the travel expense deductions, then as long as the rent is equal to or less than the hotel, you are not staying there longer than you need to for business, and you are not sub-letting it to someone when you are not there you may deduct the entire cost of rent as travel lodging.

And, yes you may use the government per diem for meals & incidentals.

-- June