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Anonymous accounting

Is housing provided to temporary employees/interns taxable to the employee?

Asked on Sept. 1, 2015

Hello My company is considering subsidizing housing for interns. According to our tax accountant if the employment is temporary ( i.e. lasts less than a year) and the employee is away from his/her "tax home" it would not be reportable as income . The guidelines are sometimes confusing, I am curious about what companies do practically, especially in the Silicon Valley area. Thank you

Answers

Anonymous CFO • January 10, 2014

Why does this sound so much like a currently popular movie? ;-)

Dale Bolen VP Accounting • January 13, 2014

The (very) general rule is that if the housing allowance is for a "permanent" abode or will last for 1 year or more, the allowance is taxable. There are more complexities than this, so check out IRS Publication 15-B and with a tax expert. Good luck.