There are many, many employers who regularly expense lodging for their employees (traveling), potential employees (traveling, interviewing), vendors (selling), customers (buying), etc. For large corporations specifically, it is not uncommon to see lease/rent expense for apartments on the income statement (or balance sheet if the lease is capitalized). My experience is if these expenses were scrutinized in an audit, the issue comes down to Management's ability to persuade the Revenue Agent(s) the expense is "ordinary, necessary." This determination, of course, is on a case by case, facts, and circumstances basis. If it's determined not ordinary or necessary the outcome is for the employer to classify the sum as an "in-kind" benefit and added to W-2. I think the point is: Post TCJA it is best, if possible, for the employer to pay these expenses directly...
P.Ray EA
Intuit -TurboTax -xTest Team
Tax Accountant: How many dependents do you have?
Client: Well, that depends. How many do I need this year?
