An employee may be able to exclude from income the value of lodging provided by an employer if certain conditions are met. The lodging must be “furnished on the business premises” and be “for the convenience of the employer.” Plus, the employee must be required to accept the lodging as a condition of employment. In one case, the U.S. Tax Court ruled that a taxpayer who worked at a military defense facility in Australia wasn’t entitled to income exclusion for housing his employer provided. The lodging didn’t meet requirements because it was miles from the worksite, it wasn’t necessary to the performance of the taxpayer’s duties and he didn’t perform significant work there. (TC Memo 2023-6)
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