Hotel Stay: Tax Deductible?

[kenjixshadow]

Hello everyone, I just signed as an independent contractor working 12 shifts a month. Location is 3 hours away from my current place (fiance will be staying here). Debating if I should get an apartment or stay in a hotel for these shifts. I'm leaning toward the latter if I can write it off my tax.

Thank you for your time.

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[tartesos]

Hello everyone, I just signed as an independent contractor working 12 shifts a month. Location is 3 hours away from my current place (fiance will be staying here). Debating if I should get an apartment or stay in a hotel for these shifts. I'm leaning toward the latter if I can write it off my tax.

Thank you for your time.

Yes it is as long as you pay for it yourself ( not if the locums company pays it for you).
Also the miles are deductible( or the car rental if you get one).

 

[RangerBob]

Yes it is as long as you pay for it yourself ( not if the locums company pays it for you).
Also the miles are deductible( or the car rental if you get one).

Are you sure? 12 shifts/month sounds more like a main gig, not a side hustle. I'm not so sure you can deduct housing then.

All the miles may or may not be deductible. If the OP is only going to/from one hospital, that looks/sounds/quacks like a commute, which is why my accountant advised I not deduct my miles (even if I were taking the home office deduction).

The duration of the contract may be a factor--if it's a temporary job I think things are more likely to be deductible.

 

[tartesos]

Are you sure? 12 shifts/month sounds more like a main gig, not a side hustle. I'm not so sure you can deduct housing then.

All the miles may or may not be deductible. If the OP is only going to/from one hospital, that looks/sounds/quacks like a commute, which is why my accountant advised I not deduct my miles (even if I were taking the home office deduction).

The duration of the contract may be a factor--if it's a temporary job I think things are more likely to be deductible.

3 hrs away from your primary residence for work it’s a deductible mileage and if your accountant disagrees you need a new one.

12 gigs is a hustle

 

[RangerBob]

3 hrs away from your primary residence for work it’s a deductible mileage and if your accountant disagrees you need a new one.

12 gigs is a hustle

Well, my drive isn’t that far. It’s about 20 min.

12-15 shifts is full-time for hospitalists here.

The OP didn’t specify if this is their primary work or a secondary one (and if temporary or permanent). I think those factors likely play a role in whether the housing/commute is deductible.

If my hospital (and main gig) were a 3hr drive away, but only because I opted not to live closer, I don’t think I could deduct that expense. But if I were doing at least a few shifts elsewhere, I could probably deduct my commute everywhere. Otherwise just going to/from one site is essentially a commute (for a permanent job) even if you’re 1099 and have a home office.

 

[tartesos]

Well, my drive isn’t that far. It’s about 20 min.

12-15 shifts is full-time for hospitalists here.

The OP didn’t specify if this is their primary work or a secondary one (and if temporary or permanent). I think those factors likely play a role in whether the housing/commute is deductible.

If my hospital (and main gig) were a 3hr drive away, but only because I opted not to live closer, I don’t think I could deduct that expense. But if I were doing at least a few shifts elsewhere, I could probably deduct my commute everywhere. Otherwise just going to/from one site is essentially a commute (for a permanent job) even if you’re 1099 and have a home office.

He said independent contractor, if you are 1099, you can deduct your car, and almost anything you use to make that income.

 

[RangerBob]

He said independent contractor, if you are 1099, you can deduct your car, and almost anything you use to make that income.

Yes, you can deduct a lot as a 1099 contractor, but not everything. I am a 1099 contractor, but it's a permanent job. Multiple accountants (including good ones vouched for by WCI) agreed deducting my mileage is too iffy since I only go to one hospital. Were I an ED physician going to a few, it'd absolutely be deductible. Of course I deduct any miles driven after I arrive at the hospital, say for meetings, etc.

I cannot deduct the cost of my housing either, since it's a permanent job.

We need more information.

 

[tartesos]

Yes, you can deduct a lot as a 1099 contractor, but not everything. I am a 1099 contractor, but it's a permanent job. Multiple accountants (including good ones vouched for by WCI) agreed deducting my mileage is too iffy since I only go to one hospital. Were I an ED physician going to a few, it'd absolutely be deductible. Of course I deduct any miles driven after I arrive at the hospital, say for meetings, etc.

I cannot deduct the cost of my housing either, since it's a permanent job.

We need more information.

Do you live 3 hrs away from your job?

There are ways to deduct almost everything and it would entail some structuring that depending on the amount of money might not be worth doing.

 

[RangerBob]

Do you live 3 hrs away from your job?

There are ways to deduct almost everything and it would entail some structuring that depending on the amount of money might not be worth doing.

No-I’m about 20 min away. But since it’s a permanent job and I’m only going to one hospital I don’t think I could deduct my commute even if it were 3hrs, correct? Or is there a point at which the distance makes it deductible?

I assume the distance is relevant for the OP if this isn’t their primary job and/or is temporary.

As you point out, I have learned some deductions just aren’t worth the hassle of taking. As someone living in CA the home office deduction was nice, but it’s a pain to track all the utilities/etc and I ultimately decided it was just too big a headache making sure it was exclusively used for work—my family would benefit from that extra space, so I’m just dropping that deduction for 2021.

 

[Doctor-S]

Hello everyone, I just signed as an independent contractor working 12 shifts a month. Location is 3 hours away from my current place (fiance will be staying here). Debating if I should get an apartment or stay in a hotel for these shifts. I'm leaning toward the latter if I can write it off my tax.

Thank you for your time.

Suggest you ask a qualified tax advisor for their professional opinion concerning the specific facts of your own case, and based on your "tax" State.

For instance ... your hotel accommodations may qualify as a business expense ... plus possibly 50% of the costs of your meals, when you're working as an independent contractor physician in another state or city. Ask them.

You may also be entitled to additional tax write-offs as an independent contractor physician. Ask them.

If yes, what are the "additional tax deductions" in your own case, and are any such deductions beneficial to you (e.g., reduce your taxable income)? Ask them.

In addition, there may be some special tax rules related to independent contractor physicians and the Covid situation. Ask them.

For all of these reasons, it is advisable to ask your professional tax advisor or legal advisor for their professional advice and guidance concerning the specific facts and circumstances associated with your income and employment (and get their responses in writing so you have a hard copy record of their responses and/or the underlying reasons for their responses to your questions).

Thank you.