I'm "self-employed." I live in City-A. My work is in City-B 100 miles away, so I rent a room in City-B usually 10 days/month. Can I deduct the room rent in City-B?

[SunnyDays]

I'm a self-employed lawyer. I live in City-A, but most of my work is in City-B. So, I rent a room in a house in City-B for when I am there for work. I rent the room on a monthly basis, but am only there for work about 10 days/mo. If it wasn't for my self-employment work in City-B, I would not rent the room there at all. 

Can I deduct the monthly rent I pay for the room in City-B where I do my self-employment work? 

[Rainman12]

See <a rel="nofollow" target="_blank" href="https://www.irs.gov/pub/irs-pdf/p463.pdf">https://www.irs.gov/pub/irs-pdf/p463.pdf</a> . Based on situation described, City B is your 'Tax Home'. Discussion/examples elucidate at reference. Living expenses at your tax home are Not deductible.

[SunnyDays]

Rainman: Thanks. However, in City-A, I work as an employee at a full-time job. My self-employment work in City-B is only about 20% of my monthly work time. Any research suggestions on this?

[Rainman12]

" in City-A, I work as an employee at a full-time job"; "I'm a self-employed lawyer" ; "most of my work is in City-B". Sorry, I'm unable to follow your .scenario. I reiterate: Pub 463; Tax Home; Actual, proportionate expenses. Retainer fees for a room are not a normal deduction; only expenses during work periods.

[SunnyDays]

Sorry I wasn't clearer. Here's the situation:

* City-A: I work 40 hrs/week as an EMPLOYEE. (4 10-hour days)
* City-B (100mi from City-A): I work about ~20% of the month as a SELF-EMPLOYED lawyer, 3 days/week.

I am reading that pub and I think it'll answer my question! I think that my tax home is indeed City-A since I do 80% of my total monthly work there. So, I think I can deduct at least the prorated rent for the days I'm in City-B traveling for the self-employment work, just as I would a hotel if I went there for a couple days. Would appreciate knowing whether you concur given the added details.

[Rainman12 · Accepted solution]

I agree that pro-rated rent, M&IE per diem, and mileage may be applied as Travel deductions on your Schedule C.

[SunnyDays]

Rainman, thanks for the insight and reference to the pub.

[ee-ea]

Go here https://www.ustaxcourt.gov/USTCInOP/OpinionSearch.aspx

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