I couldn't find any information regarding this. I am an ob/gyn in Hawaii and my house is near my office in Mililani. A few months ago, the hospital where I do deliveries closed, and now I have to do deliveries at a hospital in Honolulu which can be a 2 hour commute during traffic. In order for me to continue to do ob, I need to find a place to stay closer to the hospital. One of my colleagues said I could buy a condo near the hospital as an office business expense. I can't find any information regarding this. I am an s-corp. Do you know of any IRS bulletins which justify this? Thanks in advance.

Zip Code: 96789

I would say that if you continued to work near where you currently live, you could argue that the second home you purchase near your new job should be allowable as a business expense since your only other option to to stay at a hotel.

This is all based on the concept of your "Tax Home". Generally, your tax home is the metropolitan area where you work. Let's say you live in Boston, but work in NYC. Since you only work in one place, NYC would be your tax home, so none of your living or travel expenses would be deductible.

However, it may not matter all that much. Assuming you won't owe more than $1.1 million in mortgage debt, you can write off the mortgage interest on that residence as your second home. Plus, make sure to purchase one with a big home office. That will let you write off a chunk of the condo fees, utilities, and other costs. Plus, you can depreciate that portion of the condo.

So I think there is a way to make a decent percentage of this home tax deductible to you.

Zip Code: cpa@mdtaxes.com