Having no physical address?

One obstacle would be you wouldn't be able to claim per diem for your days away from 'home'.

 

That's exactly the same thing I was thinking. I figure it would just be better to give up my apt especially since I leave alone. We're talking $10,000 to $11,000 a yr that can be saved for another investment.

 

There is more to the claiming per diem than just this. If caught, this is fraud.

Here is the link to the per diem in Publication 463.

http://www.irs.gov/publications/p463/ch01.html#en_US_2011_publink100033754

No main place of business or work. You may have a tax home even if you do not have a regular or main place of work. Your tax home may be the home where you regularly live.
Factors used to determine tax home. If you do not have a regular or main place of business or work, use the following three factors to determine where your tax home is.

1. You perform part of your business in the area of your main home and use that home for lodging while doing business in the area.
2. You have living expenses at your main home that you duplicate because your business requires you to be away from that home.
3. You have not abandoned the area in which both your historical place of lodging and your claimed main home are located; you have a member or members of your family living at your main home; or you often use that home for lodging.

If you satisfy all three factors, your tax home is the home where you regularly live. If you satisfy only two factors, you may have a tax home depending on all the facts and circumstances. If you satisfy only one factor, you are an itinerant; your tax home is wherever you work and you cannot deduct travel expenses.


If no money changes hands for the rent, then you can be considered itinerant.


Will it be caught on an audit?

Maybe not.

I had one checked for verification on a client. I expect to see more of this in the future.

 

I used my sisters address for my physical address, while I had a PO Box to recieve any mail. Was able to claim per diem with no problem, I've been audited twice in 3 years with no problems.

Sent from my Galaxy Nexus using Tapatalk 2

 

My question or thought is thisI'm going to go the homeless route too very soon.I currently live in Texas, going to use a friends address to get my mail.They live in texas, so i can change my address on lic. essy enough, stay in Texas, no state income tax.If I rent a room, legit, give them moneyHere is what I wonder, now don't they have to claim that rent money I pay them as income?

 

Yes. That is the issue that almost cost my client his write off.

 

Why couldn't you buy groceries or do yard work in lieu of rent
.
Sent from my Galaxy Nexus using Tapatalk 2

 

You're still supposed to claim "traded" or whatever it's called work/room and board, etc. As income. Just sayin'
mary