What is the name of your state (only U.S. law)?: New Jersey.
I work as a software consultant (employee) for a company in NJ, and am on a billable project for a client in PA.
The project is expected to last for another 2 years. We are closely approaching our 1 year on-site, and I have concerns on what becomes taxable after 12 months on a project.
Currently, I have been paying for related travel expenses (hotel, car rental, meals, gas, parking/tolls) out-of-pocket, which is billable to the client. I am later reimbursed by my company.
The primary concern is around lodging. I have been staying at a hotel for the past year, and am looking to transition into a longer-term housing situation (not relocation). My company has not offered to put me up in a corporate apt. Instead, I am looking to rent an unfurnished apt + utilties + rent furnishings. The idea is to expense out (monthly) the apt in the same manner as a hotel.
Question: It seems that the project duration would put me in the "Indefinite Work Assignment" category, which I understand has tax implications if an assignment lasts longer than 12 months. Is it a correct assumption that all related travel expenses now become taxable? For example, do hotel and meal reimbursements now become taxable?
How can this be so, if I end up paying all the expenses out-of-pocket up front?
Any prompt responses would be greatly appreciated!
I work as a software consultant (employee) for a company in NJ, and am on a billable project for a client in PA.
The project is expected to last for another 2 years. We are closely approaching our 1 year on-site, and I have concerns on what becomes taxable after 12 months on a project.
Currently, I have been paying for related travel expenses (hotel, car rental, meals, gas, parking/tolls) out-of-pocket, which is billable to the client. I am later reimbursed by my company.
The primary concern is around lodging. I have been staying at a hotel for the past year, and am looking to transition into a longer-term housing situation (not relocation). My company has not offered to put me up in a corporate apt. Instead, I am looking to rent an unfurnished apt + utilties + rent furnishings. The idea is to expense out (monthly) the apt in the same manner as a hotel.
Question: It seems that the project duration would put me in the "Indefinite Work Assignment" category, which I understand has tax implications if an assignment lasts longer than 12 months. Is it a correct assumption that all related travel expenses now become taxable? For example, do hotel and meal reimbursements now become taxable?
How can this be so, if I end up paying all the expenses out-of-pocket up front?
Any prompt responses would be greatly appreciated!