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    bgcwe's Avatar
    bgcwe Posts: 1, Reputation: 1
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    #1

    Mar 11, 2010, 02:50 PM
    Renting a house from employer for $1.00 per month
    Hi, my employer wanted me to live closer to the office, I used to be 2 hours away, so he purchased a house for me and now I stay there for 1$ a month. There is an actual lease agreement for this. Is this somehow considered income that is taxable to me?

    Thanks
    ebaines's Avatar
    ebaines Posts: 12,131, Reputation: 1307
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    #2

    Mar 11, 2010, 03:40 PM

    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.
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,301, Reputation: 7692
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    #3

    Mar 11, 2010, 04:58 PM

    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
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
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    #4

    Mar 11, 2010, 11:48 PM
    Quote Originally Posted by bgcwe View Post
    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.
    ebaines's Avatar
    ebaines Posts: 12,131, Reputation: 1307
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    #5

    Mar 12, 2010, 06:46 AM
    Quote Originally Posted by Fr_Chuck View Post
    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
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