Welcome back! Ask questions, get answers, and join our large community of tax professionals.
cancel
Showing results for 
Search instead for 
Did you mean: 

What business expenses are deductible when out of state?

taxu2
Level 4

Client's primary residence is in IL. He has an IL based construction business and traveled to FL for some work. Can he deduct rental house payments, rental house utility payments, food costs and car rental expenses while he was in FL? 

0 Cheers

This discussion has been locked. No new contributions can be made. You may start a new discussion here

1 Solution

Accepted Solutions
TaxGuyBill
Level 15

Assuming he is away from his "Tax Home" for less than one year and his primary purpose is business, yes, that all sounds deductible.

View solution in original post

0 Cheers
8 Comments 8
TaxGuyBill
Level 15

Assuming he is away from his "Tax Home" for less than one year and his primary purpose is business, yes, that all sounds deductible.

0 Cheers
taxu2
Level 4
So if he was in FL for more that he was in IL and made more in FL than IL, then FL would be his tax home?
0 Cheers
George4Tacks
Level 15
Home is basically where you intend to return after you have finished what you are doing in that other place. There are a myriad of determining factors - driver's license, home ownership, family, car registration, voter registration. Here is a quickie from Illinois https://www2.illinois.gov/rev/questionsandanswers/pages/369.aspx California has a whole book.

Here's wishing you many Happy Returns
0 Cheers
TaxGuyBill
Level 15
0 Cheers
taxu2
Level 4
Thanks guys! It seems to be more of a pain than I thought.
0 Cheers
taxu2
Level 4
One more thing......So Illinois will tax FL income since he was a resident but I don't need to file a FL return since they don't have income tax?
0 Cheers
George4Tacks
Level 15
Correct.

Here's wishing you many Happy Returns
0 Cheers
taxu2
Level 4
Thanks again!!
0 Cheers