Terry O Posted February 27, 2012 Report Share Posted February 27, 2012 I have a client that is being claimed as a dependent (F/T student living away from home) who stayed the summer and received a 1099 Misc. I know it's Sched C - -but - -is the rent that was paid for the apartment for the summer a legitimate expense against this $4500??? 30 years, I have never had this come up - - - sigh Thank you! Quote Link to comment Share on other sites More sharing options...
jainen Posted February 27, 2012 Report Share Posted February 27, 2012 >>(F/T student living away from home)<< No such thing in Section 152. To be a dependent, the student has to live with the taxpayer for at least six months, including TEMPORARY absence for school. This little bird has flown away. And no, rent is not deductible. Even if you say the student lived with parents, the "tax home" is where the principal job is, not the principal residence. Quote Link to comment Share on other sites More sharing options...
Terry O Posted February 27, 2012 Author Report Share Posted February 27, 2012 Thanks Jainen!!!! I should NOT second guess myself - - - Quote Link to comment Share on other sites More sharing options...
BulldogTom Posted February 28, 2012 Report Share Posted February 28, 2012 Oh - I hate to do this to my good friend Jainen, but I think you are wrong. Time at school is counted as time in the home. If the age requirement is met along with the other requirements for a student to be claimed as a dependent, I think the parents can still claim that little birdie. Just because she took a summer job at the school does not make her tax home change. She is "in the home" for as long as she is a full time student under the age of 24. Even if you throw out the summer months, she was still in the home for 9 months. But I agree the rent is not deductible. Tom Lodi, CA Quote Link to comment Share on other sites More sharing options...
Pacun Posted February 28, 2012 Report Share Posted February 28, 2012 As long as he didn't provide more than 50% for his own support, he can be claimed by his parents and the time he is away for school is considered to be spent with his parents. In this case it seems he was a full time student for at least 5 months and under 24. If you want to be technical and claim that he changed his tax home, you need to ask him if he changed his drivers licence, registered to vote, etc. Quote Link to comment Share on other sites More sharing options...
jainen Posted February 28, 2012 Report Share Posted February 28, 2012 >>Time at school is counted as time in the home.<< This is only true if the school is a temporary absence, which it is not if the student only stops in occasionally to visit. I don't know what the case law on this is, and the regs are not exactly to the point. Section 152 doesn't define temporary under the qualifying child rules. It's in the old regs now called qualifying relative, where the question is whether a non-relative lives in the home all year. "The taxpayer and dependent will be considered as occupying the household for such entire taxable year notwithstanding temporary absences from the household due to special circumstances. A nonpermanent failure to occupy the common abode by reason of illness, education... under which the dependent is absent for less than six months in the taxable year of the taxpayer, shall be considered temporary absence due to special circumstances." Quote Link to comment Share on other sites More sharing options...
MAMalody Posted February 28, 2012 Report Share Posted February 28, 2012 I agree with Tom and Pacun. Working as a prior IRS auditor and owning my own tax practive and representing in audit for my clients for over 20 years, have ever disallowed or had disallowed a situation as described above. Have you Jainen? Quote Link to comment Share on other sites More sharing options...
jainen Posted February 28, 2012 Report Share Posted February 28, 2012 >>representing in audit for my clients for over 20 years<< This is not about what you did in the eighties--the relevant law is only six years old! As for "a situation as described above," all we know from the original post is that the student did NOT live "at home," and obviously that was NOT for the temporary purpose of education because she stayed away even when she wasn't in school. Maybe the job was temporary too (we don't know that either), but still there was no return to the household for at least another school year. Spreading "temporary" over three tax years is a stretch. Well, that isn't what Terry was asking anyway. I'm just upset because the temperature dropped down into the thirties last night. Quote Link to comment Share on other sites More sharing options...
Terry O Posted February 28, 2012 Author Report Share Posted February 28, 2012 OK - -thanks all!!!! I am not comfortable in taking the deduction - - -yes the job was temporary - - AND - - the parents picked up the tab for the summer rental - - see where I'm going here? AND - - -I'm cranky - - - because we ahve had the WARMEST winter in forever, and I am stuck inside working - - - I want to go for a walk - -I want to wash my car - - -I want to clean the windows - -I am pathetic! :spaz: Quote Link to comment Share on other sites More sharing options...
michaelmars Posted February 28, 2012 Report Share Posted February 28, 2012 if the parents paid for the schooling housing doesn't that make it a second home and thus the student did live in the parents home. Quote Link to comment Share on other sites More sharing options...
BulldogTom Posted February 28, 2012 Report Share Posted February 28, 2012 I am sticking to my guns on this one. A child who is away at college, who is being supported by her parents, is a dependent of the parents even if she doesn't come home until the 4 or five years of schooling are up. A part time internship (which implies continuation of the education experience) does not change the dependency situation. Only support and age are going to do that. Tom Lodi, CA Quote Link to comment Share on other sites More sharing options...
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