Working on a construction job out-of-town?

Generally speaking, you can get a tax deduction for living expenses incurred while you are on a temporary construction job as long as the assignment is realistically expected to take one year or less.

For example, let's say you live and work mainly in one city. But because of a shortage of construction jobs, you take a temporary assignment in another city that is expected to last eight months. Under these circumstances, you can write off "ordinary and necessary expenses," including transportation, meals, lodging, computer rental fees and business phone costs.

However, you must meet certain conditions before you take a deduction and there are exceptions to the general rules. For instance, what happens if a job is expected to last less than a year but then drags on longer? You might still qualify for write-offs under an exception in the tax law to the general rule.

Tagged Accounting, Construction, Tax