Hi, my employer wanted me to live closer to the office, I used to be 2 hours away, so he purchased a house for me and now I stay there for 1$ a month. There is an actual lease agreement for this. Is this somehow considered income that is taxable to me?

Thanks

The difference between the fair market value of rentimng the house and the $1 you pay is considered a taxable benefit to you, UNLESS this is a temporary assignment. There are other possible exceptions, but I don't think they apply to you - for example, if the lodgng is on the business premises and living there is a requirement for your job; or if you are a member of the clergy; or a faculty member of an educational institution.

yes, just like the pastor who lives in a house funished by the church. The value of that rental is considered income.

** ebaine, the value of the home has been considered income for pastors for a long time, unless it has just changed over the last couple years

Hi, my employer wanted me to live closer to the office, I used to be 2 hours away, so he purchased a house for me and now I stay there for 1$ a month. There is an actual lease agreement for this. Is this somehow considered income that is taxable to me?
Thanks

Your employer should report this as income on your W-2. Talk to your employer.

yes, just like the pastor who lives in a house funished by the church. the value of that rental is considered income.

** ebaine, the value of the home has been considered income for pastors for a long time, unless it has just changed over the last couple years

I only meant to imply that rules vary regarding the taxability of housing allowances for clergy or use of a home provided by the church. My understanding is that the FMV of a home provided by the church as pay for services, plus the utiity costs for it, is not taxed. Alternatively, if the clergy member receives a housing/rental allowance from the church in exchange for services it is not taxed as long as it is designated as such by the church. This does not apply to self-employed clergy. For reference, see page 8 of: http://www.irs.gov/pub/irs-pdf/p517.pdf