Deductions for Bi-Coastal Business
March 27, 2008 11:07 AM   Subscribe

I’m a writer who is spending more and more time in Los Angeles for work. I live in Florida, and am a Florida resident. My question is this: If I rent a place in LA, because I am spending roughly half of my time there, what deductions can I take advantage of?

Further info: I’ve established a Florida Corporation for my work. My primary residence is in Florida. Most of my work revolves around the entertainment industry these days, thus requiring me to spend roughly half the year in LA. Hotels are just getting too expensive, as is renting a car.

If I lease a place in LA, and purchase another car for LA, what deductions are available to me/my company? Would I be able to deduct all of the rent? What portion? How about utilities? Car insurance? Essentially, the only reason I am in LA is to work, and all of these things are necessary to for me to work here. Personally, I’ll spending as much time as possible in Florida (my home), and will keep my residency there. However, the business needs to provide a place for me to live and work when on the west coast.

Believe it or not, I’ve asked this same question of some accountants, and I’ve gotten different answers from each of them.

I’d love to hear what any accountants, lawyers, business owners, etc have to say about this.

Thanks!
posted by vVCHAZVv to Work & Money (1 answer total) 1 user marked this as a favorite
 
Would you want to file state returns in Florida and California? Is "your company" an LLC or just you as an independent contractor? If your business is based in Florida, it shouldn't matter in which state you spend money if you file in Florida. I don't think you could deduct the car or car insurance unless the car is used exclusively for business. If you do file this way and deduct both "offices" I'd suggest finding an accountant who really understands your unique position (and possibly an attorney in case you are audited).

Essentially, the only reason I am in LA is to work, and all of these things are necessary to for me to work here.

The deductions still have to be business-related. You can't deduct bath soap because you have to be clean to go to work.
posted by mattbucher at 1:58 PM on March 31, 2008


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