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lrwolter19
New Member

I work as the manager of a bed and breakfast, and pay rent to live on property. Because I am on call 24/7, are there any tax benefits I should take advantage of?

I manage a bed and breakfast, and I pay rent to the owner to live on property to be available to guests 24/7. I am a salaried employee. 

Is there a way that I can get some of my rent money back in taxes, or any additional benefits I should be seeking? I am not receiving a discounted rental rate or anything.

1 Best answer

Accepted Solutions
TaxGuyBill
Level 9

I work as the manager of a bed and breakfast, and pay rent to live on property. Because I am on call 24/7, are there any tax benefits I should take advantage of?

Unfortunately, no.  As this arrangement stands, there isn't really anything you can do.


However, you may want to talk to your employer to change this arrangement.  🙂

If your employer requires you to live on-premises, that value would be tax-free.  That will save both you and your employer taxes.

For example, let's say you currently get $4000 a month in salary and pay $1000 a month in rent.  If your employer changes the situation, your employer could pay you $3000 a month and require you to live on premises rent-free. Your net amount would be the same, but $1000 less would be subject to income taxes and Social Security/Medicare taxes.  Your employer would save on Social Security/Medicare taxes, and possibly Federal Unemployment, State Unemployment, and Worker's Compensation.

https://www.irs.gov/publications/p15b#en_US_2017_publink1000193699


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2 Replies
TaxGuyBill
Level 9

I work as the manager of a bed and breakfast, and pay rent to live on property. Because I am on call 24/7, are there any tax benefits I should take advantage of?

Unfortunately, no.  As this arrangement stands, there isn't really anything you can do.


However, you may want to talk to your employer to change this arrangement.  🙂

If your employer requires you to live on-premises, that value would be tax-free.  That will save both you and your employer taxes.

For example, let's say you currently get $4000 a month in salary and pay $1000 a month in rent.  If your employer changes the situation, your employer could pay you $3000 a month and require you to live on premises rent-free. Your net amount would be the same, but $1000 less would be subject to income taxes and Social Security/Medicare taxes.  Your employer would save on Social Security/Medicare taxes, and possibly Federal Unemployment, State Unemployment, and Worker's Compensation.

https://www.irs.gov/publications/p15b#en_US_2017_publink1000193699


lrwolter19
New Member

I work as the manager of a bed and breakfast, and pay rent to live on property. Because I am on call 24/7, are there any tax benefits I should take advantage of?

Thank you! I'll look in to that for sure!!
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