FAQ Friday – How to Establish a Tax Home

Q: How do I establish and keep a “tax home?”

A: Full disclosure, I am not a tax professional.  However, I have worked in the industry for 5 years and this information comes straight from a tax professional.  Feel free to click here for more information!

That said, in the research I have found, you have a couple of tasks to do to establish and keep a tax home.

Keep in mind, this option applies to people who do not already have a house or apartment and is trying to use a friend/family member’s residence.  If you keep renting or owning a residence while traveling, you already have a tax home!

  1. You need to show that you pay fair market rent for the place you use.  The price could be any amount depending on where the location.  Search craiglistfor examples of pricing.  Create a paper trail by writing checks.
  2. Spend at least 30 days “visiting” your tax home.  You could use receipts from simple purchases to prove you were in that location for the full length of time.

Remember, in order to qualify to travel, you need to work outside of the location where your tax home is located.  There is no specific amount of miles you need to meet to qualify.  You just have to be outside of reasonable commutable distance.

Have other questions about travel?  Please comment below!

FAQ - tax home.jpg

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