Job offer? How to crunch these numbers.

[jIM_Ohio]

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?

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?

[LivingAlmostLarge]

Except you declare the stipend income and you don't get to write it off the condo right because they are paying for it?

Wow, Monkeymama is right this gets complicated fast. So is writing off your primary home!

[FrugalFish]

Before getting to the financials, how does your wife feel about you traveling that much (especially now with the twins)?

This is my initial focus too. Your sons will only be little once and the first couple of years are so special- you can never recover time lost when they are little. Aside from that, I cannot imagine essentially being a single parent much of the time to my one DD, let alone twins. My DH will be out of town all next week and I'm already dreading what a long week it will be without any reprieve from a very active 2 yo. There is more to life than money, and if I were your wife that "more" would be my sanity!

Good luck making a decision. Clearly you are way over my head on your main question

[LivingAlmostLarge]

I thought Jim got to work from home though a lot?

[tripods68]

Let say you secured the job, and bought a condo instead. A year later you you know regret your decision accepting this job (perhaps it wasn't as the job it was publicize, or due to family reason, whatever) then you live your job. What happens to the condo if you can't sell it in today's housing market? Now you're carrying to mortgage loan, can you afford it? I think the would put you in bad financial situation being a new dad. I'm not judging but simply putting my two cents.

[jIM_Ohio]

I thought Jim got to work from home though a lot?

I don't work from home, just work from 1-10pm each weekday. Wife works from home from 12:30-4:30 each day.

It's not like the wife and I see each other much, except weekends. The logic behind this was that we would save money (fuel x2, less SS paid on same gross income, and wife gets to stay at home).

My current job does not exactly stimulate me- company is too big to really make any significant changes or impact on customers.

Let say you secured the job, and bought a condo instead. A year later you you know regret your decision accepting this job (perhaps it wasn't as the job it was publicize, or due to family reason, whatever) then you live your job. What happens to the condo if you can't sell it in today's housing market? Now you're carrying to mortgage loan, can you afford it? I think the would put you in bad financial situation being a new dad. I'm not judging but simply putting my two cents.

I know this is a risk. If I don't put much money down on the condo, my risks are low and the possible benefit is high. I would make sure it is the type of place easily rented as well.

[Like2Plan]

). Pay rate would be close to 110k for this position.

I need help with the taxes side of this:

2) I know SS is on first 93k of earned income (per individual) at 3.5% (or something similar). I assume if I made 110k gross, dollars 93001-110000 do not get the 3.5% SS tax?
.

Jim,
The ceiling for 2008 is 102K for SS. The Social Security tax rate is 6.2% per individual (your employer also contributes another 6.2%) up to the ceiling. There is no ceiling on the medicare tax you pay. It is 1.45% of your income (and your employer also contributes another 1.45% towards medicare).

Link to SS web page

[ScrimpAndSave]

Thats a tough one...

[LivingAlmostLarge]

How does putting less down decrease your risk? What happens if you want to sell after 1 year because you decide too much travel and then quit?

Wouldn't you maybe need to bring money to the table? And who pays all the closing costs?

[jIM_Ohio]

Less risk with less money down- if I walk away from property, I lose less.

I have traveled like this before. My first 7 years at current job I was a travel whipping boy- 50-75% travel most months.

[LivingAlmostLarge]

Who pays for all the closing costs for both buying and selling?