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

    Jul 20, 2009, 08:28 AM
    Are my employer paid rent expense a taxable fringe benefit?
    Hello, my employer is paying my rent at $1,500 per month due to me relocating to another office in another state. Is this a taxable fringe benefit that I will have to include as part of my compensation?

    Thank you,
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Jul 21, 2009, 11:54 AM
    It can be. It depends on HOW LONG he continues to pay the rent.

    If it just for a few months, then the argument could be made that it is reimbursement for moving expenses. However, if it is ongoing beyond, say, six months, then the IRS would probably consider it compensation-in-kind and be subject to at least income and probably FICA taxes.
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