# employer provided housing



## Yossarian1 (Mar 9, 2015)

Hello Everyone, 
I have an interesting case for the tax experts of the forum, I hope you can help me.
I work for (and get paid by) company "A" (italian) that sent me to work in the US subsidiary ("B"). 
As an expat living in US for >183 days, I have been declaring my worldwide income.
However "B" pays the rent of the apartment where I live.
The question is whether or not this rent constitutes for me taxable income or not.

The IRS normally would consider it taxable income, but there are exceptions. If they think the assignment does not change your tax home because it's temporary, then the rent is deductible. They consider it temporary if it lasts less than a year.
See page 4:
www .irs.gov/pub/irs-pdf/p463.pdf

My assignment lasts more than a year, however (1) has an end date on the contract with company "A", (2) I have a non resident alien Visa and (2) most important, based on the tie breaker rules in the Italy-US tax treaty, my tax home remains Italy.

Do you think for these reasons we can declare it as income but then deduct it?

thanks!


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