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If I am given corporate housing will I have to pay taxes on it? It will be for a short term project relocation. If I do not take the housing I will not get the job.

My company is offering my corporate housing that they will pay for including utilities. It will not be a reimbursement, but funded completely by them. It will be short term less than a year. I will still keep my current home and continue to pay taxes on it. Is this a nontaxable fringe benefits under FB15?
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4 Replies

If I am given corporate housing will I have to pay taxes on it? It will be for a short term project relocation. If I do not take the housing I will not get the job.

 

  • Exception: It can be non-taxable if it meets the IRS’s “convenience of the employer” test (IRC §119):
    1. On the business premises – The lodging must be on or near the employer’s place of business.
    2. For the employer’s convenience – Provided for business reasons, not just as extra compensation.
    3. Condition of employment – You must be required to accept the lodging to properly do your job.
  •  

 

Hal_Al
Level 15

If I am given corporate housing will I have to pay taxes on it? It will be for a short term project relocation. If I do not take the housing I will not get the job.

I concur with Bsch4477's answer, it is most likely not taxable for the reason's stated.

 

But, the bottom line may be how your employer handles it at W-2 time. If they do not include the value of the housing in box 1 of your W-2 (and they most likely won't), the housing value is not taxable to you. 

 

Q. Is this  nontaxable fringe benefits per Pub FB-15?

A. Maybe, depending on other details. More likely,  this is the employer directly paying out of town business expenses.  Either way, it should not be taxable to you. 

pk
Level 15
Level 15

If I am given corporate housing will I have to pay taxes on it? It will be for a short term project relocation. If I do not take the housing I will not get the job.

@macey.karr , agreeing with the excellent / complete answers by my colleagues @Bsch4477  and @Hal_Al , just like to draw attention to the assumption here  that this housing is in the USA and not abroad  and that the  short time is less than a year.

If I am given corporate housing will I have to pay taxes on it? It will be for a short term project relocation. If I do not take the housing I will not get the job.

It is in the US!

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