Temporary Relocation

[amumaugh]

I recently relocated to FL from GA for work. I took the position as 1099 for a 6 month contract. The consulting firm that actually pays me is back in GA. I will be moving back to GA after my contract is up. I terminated my lease in GA and have a 6 month lease here in FL. Can I deduct my living expenses (rent, utilities, mileage, food, etc.) while I am here or is that only applicable if I kept my old apt in GA?

Thanks

[BelizeBreeze]

Think of the 50 mile rule....you screwed up.

[amumaugh]

I don't understand how I screwed up. 1. Pub 521 is only related to moving expenses 2. I am over 400 miles from my former home (see quote from Pub 521 below)

"The distance test considers only the location of your former home. It does not take into account the location of your new home"

I am concerned with living expenses, not moving expenses (although I will also look into those deductions)

[BelizeBreeze]

Originally Posted by amumaugh

I don't understand how I screwed up. 1. Pub 521 is only related to moving expenses 2. I am over 400 miles from my former home (see quote from Pub 521 below)

"The distance test considers only the location of your former home. It does not take into account the location of your new home"

I am concerned with living expenses, not moving expenses (although I will also look into those deductions)

You changed your legal residence. You were not driving or located more than 50 miles from your work location and therefore could not be paid per-diem nor can you now claim expenses for commuting.

If you had taken a weekly or montly hotel room (most the same or less than an apartment) then you could have retained your legal residence in Georgia and claimed the expenses for working including the cost of the hotel, meals etc.

When you moved, you gave up that right.

[amumaugh]

Is it a question of physical domicile or state of residence? I believe that GA is still my state of residence even though I don't have my old apt anymore. My vehicle registration, license, auto insurance, voter registration is all still GA.

[BelizeBreeze]

Originally Posted by amumaugh

Is it a question of physical domicile or state of residence? I believe that GA is still my state of residence even though I don't have my old apt anymore. My vehicle registration, license, auto insurance, voter registration is all still GA.

So, not only did you change your legal residence, you violated Florida Motor Vehicle laws. I would NOT take that argument into court

[amumaugh]

So even though I'm only here for 6 months I am supposed to register everything in FL? What a crock!

[amumaugh]

How rude of me... I almost forgot

Thanks B!

[abezon]

In order to claim moving expenses, you have to be employed for 39 weeks at the new location. To claim living expenses for a temporary job, you have to be maintaining a permanent residence & duplicating living expenses.

You can, however, deduct any expenses related to the job on your Schedule C. If you have a home office, you can deduct the miles to visit your client or buy supplies. You can probably take the costs of getting to GA & back to FL. See a tax pro for help figuring out what other types of expenses you should track & claim.

You might want to register everything in FL, simply to sever your GA residency. FL does not have income tax. If you remain a GA resident the whole time, GA will tax your FL income. Since you have no more ties to GA, it could be argued that you might return to GA, but might stay in FL or go to another state. I'd suggest calling your GA tax pro & asking about the state rules on residency if you leave, then return in 6 months.