Whether you can deduct rent depends primarily on your employment status and the duration of your assignment.
If you are a self-employed on a temporary assignment lasting less than one year, you can generally deduct rent as a business travel expense on Schedule C.
However, if you are a W-2 employee, current federal law typically prevents you from deducting unreimbursed employee business expenses.
To qualify, you must also maintain a "tax home" in your primary state and show that your living expenses are being duplicated. If your work assignment in the second state is expected to last longer than one year, it is considered "indefinite," and your rent becomes a non-deductible personal expense.
