Deductions & credits

 


@PerryR wrote:

How about the Employer pays the Man-Cave landlord directly, bypassing the reimbursement juggernaut? 


If the employer pays for housing for the employee, that is a taxable benefit.  The value must be included in the employee's W-2 and subject to employment taxes.  Free housing is not a deductible or non-taxable benefit unless it is on the employer's premises for the convenience of the employer (such as, employee is a security guard or the operator of a critical system who must be on call and instantly available 24 hours a day).