Quote:
Originally Posted by LuxLiving
Let me understand better - the travel would all be to one city? If the wife quit work why not move to that city?
So, if I'm reading this correctly and it is all to just one city that the travel is in - then you are planning to keep your current home & put in a home office there, and buy a condo in the travel city. Could you also claim the deductions for a second office in the condo?
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Each assignment to a client has potential to be volatile. And at 3000-4000 miles away, seeing family would be tough if we moved. And kids changing schools every 2-5 years would be tough.
So example given to me in interview was Seattle. Company consults to a rather large software company and needs training material designed. Probably in year 1 or 2 of a 5 year arrangement with client. 40 of the 52 weeks would be spent in Seattle. I would be working from home for a portion of the 40 and the other 12. The condo is a place to stay- very little work would be done from condo. I could deduct the mortgage interest from the condo , but not much else, I think.
The condo would be in lieu of getting a corporate apartment (fully furnished). Person I interviewed with suggested furnished apartments go for $3200/month in that area. Company would reimburse me for lodging, and the apartment route is cheaper than a hotel. I was the one which made the condo conclusion (buy a condo, use stipend to pay mortgage, then in 4 years sell the condo and get this money back into my pocket). Obviously some risk involved, but I think the reward is worth the risk.
The person I interviewed with also made the same comment about car rental. Client is paying $25/day in expenses to him for this position for a rental car ($6800/year). If I chose to lease or buy a car, I could keep the car after the 4 year assignment had the whole car paid for. Again a reward which is worth the risk.
Even if the reimbursement above is taxable, I think the benefits and subsequent tax returns would allow writing off of most of the expenses.
Thoughts?