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

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) |

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

Dale Bolen
Title: VP Accounting
Company: C.R. Laurence Co.
(VP Accounting, C.R. Laurence Co.) |

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.

Topic Expert
Malak Kazan
Title: VP, Special Projects
Company: ERI Economic Research Institute
(VP, Special Projects, ERI Economic Research Institute) |

Have you considered paying them as 1099? How long is the internship?

Anonymous User
Title: CFO
Company: Local Government Agency
(CFO, Local Government Agency) |

facts and circumstances

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