I work as an independent contractor (self-employed) and have been invited to enter into an 11 month contract that would require that I temporarily relocate to another state - not commuting distance. I would still maintain my primary residence, but wondered if I can deduct the cost of my lodging expenses while participating in my temporary assignment if it is not reimbursed by my client? What are the requirements or pitfalls. Thanks! BR

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Originally Posted by trngdesign

I work as an independent contractor (self-employed) and have been invited to enter into an 11 month contract that would require that I temporarily relocate to another state - not commuting distance. I would still maintain my primary residence, but wondered if I can deduct the cost of my lodging expenses while participating in my temporary assignment if it is not reimbursed by my client? What are the requirements or pitfalls. Thanks! BR

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Guess this depends on the country you are living in. BTW which country are you from?

I am not a tax expert. But, I am entirely self-employed. I would think that you could deduct your lodging expenses under the conditions that you have provided above, if you live in the U.S.

If I were on temporary assignment for that length of time, I would be passing on at least some of the expense of my lodging to the customer. But, I could see not including the expense of lodging to a customer as a way to sell the job to them.

Maybe someone will come along who has a more informed answer, though

Yes, you CAN claim the temporary living expenses.

You can claim the actual expenses (which must be documented), or you can claim the per diem rates as specified in IRS Pub 1542, which require NO documentation.