Discussion:Military Housing - Form 2106?
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Discussion Forum Index --> Tax Questions --> Military Housing - Form 2106?
30 March 2010 | |
TP was at flight school in 2009, wife stayed in principal residence.
TP used turbo tax in 2008 and treated his rent at military flight school as unreimbursed employee expense on Form 2106. I'm pretty confident that wasn't correct treatment, but it seems there are always exceptions for military personnel. A quick search brought up nothing. Is the rent deductible or not? |
30 March 2010 | |
IRS Publication 3 - Military Tax Guide is silent regarding housing. This supports my assumption of nondeductibility, but can someone confirm I'm not missing something? |
30 March 2010 | |
Being a retired military person, I would suggest that if he was at military flight school and they did not give him on base quarters, he should have gotten per diem pay for his stay there and that covers cost of housing and subsistence ( food etc )
I would ask TP if he got per diem for that school and of course that would nullify the form 2106. |
31 March 2010 | |
If he didn't receive per diem would that make his housing a deductible unreimbursed employee expense? |
IDrinkYour Milkshake (talk|edits) said: | 31 March 2010 |
As a former Marine, I can tell you he received tax-free per diem (ask him about a govt travel card). Pilots are the primadonnas of the military. They don't do anything on their own dime. |
31 March 2010 | |
Milkshake has the correct answer.... he did receive per diem and he does have a government travel card. It is mandatory for everyone in the government ( civilian or military ) to have one. That makes less paperwork for the government.... |
31 March 2010 | |
Picture clearer now - Housing allowance of $900 received, rent was $500. Mortgage pmt on home was $1000.
TP has assumed housing allowance was for rent + Mortgage, leaving $400 of unreimbursed expenses. I told him with confidence the housing allowance should be applied only to the rental home on the base where he's stationed for flight school. Now though, I'm starting to wonder how military housing allowances work. Any chance a portion of it should be applied to the house payments? I still say no, but my knowledge of military matters is quite limited. Obviously they are getting a mortgage interest deduction, which makes me think even more the housing allowance is for the rental only. |
IDrinkYour Milkshake (talk|edits) said: | 31 March 2010 |
Military get a BAH allowance (tax-free) when they are allowed to live off base. If they own a home, they may still deduct the mortgage interest. |
31 March 2010 | |
thank you. Very helpful, and matches my assumptions. Semper Fi. (can I use that term as a life long civi?) |
IDrinkYour Milkshake (talk|edits) said: | 31 March 2010 |
No. |