Federal Taxes

Texas

My permanent residence (including family) is in Austin.
I have been reassigned within my company to a new position with my company in Houston (3 hour drive).
I wake up Tuesday morning and drive to Houston, stay overnight by splitting an apartment with another (with my total $300).
I drive home Friday evening.

I have a car allowance based on mileage that typically covers anything from the office to a prospect/customer and back.

I'm now spending money on addtional food, automobile expenses, and rent.

What - if any - of this added cost for work related puposes is tax deductable? Thank You.

If the assignment is temporary (1 year or less), you can claim all your Houston housing expenses as employment expenses. This would include rent, utilities, phone, cable, meals ($46/day in 2003), and miles back & forth, less any reimbursement. This is a miscellaneous itemized deduction subject to 2% AGI floor. You and your spouse may both take employment expenses.

If the transfer is temporary, you are expected to move and none of your housing is deductible.

Thank You abezon.
To be more specific about the situation - is that it could become permanent. I was with a division in Austin that was dissolved. They have given me a vine by letting me work with the Houston Sales team trying to earn a full-time position. I was given a 90-day notice originally. I have 90 days to earn a fulltime position in Houston. I am on a "tryout" basis. Thus, other than the original car allowance I previously had, all the additional expenses and mileage are coming out of my pocket. Would this be deductible under this scenario, up until I become permanent?

Under those facts, yes. You can take your housing expenses on Sch.A, misc deductions

thank you abezon. I appreciate your time spent in giving me the answer. Regards, BHall