Freelancer Taxes For Business Earned Out Of State

New bg11229
Oct 20 5 Comments

I have an S corp registered in NYC and have a client in Philadelphia that pays me corp to corp. to accomodate for 40+ work hours, I’ve taken out an apartment under the business name in Philadelphia, and now live here for the most part. I visit NYC every two weeks. My question is how do I justify which expenses incurred in Philadelphia are business related?

Assumptions: business apartment, meals and entertainment, laundry, office related expenses, business memberships, etc. What about a car lease under the business? Gas?

Previously, in management consulting, all work-related expenses while travelling for work were reimbursable

Tips/Advice greatly appreciated

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TOP 5 Comments
  • New rich101
    S corporation audit chances are ridiculously low. Take the expense as much as you can. Take mileage rather than actual expense.
    Oct 20 2
    • New bg11229
      OP
      @rich How do you define actual expense? Wouldn’t that plus insurance be higher?
      Oct 21
    • New rich101
      Nyc-Philadelphia can easily claim 20000 miles per year.
      Oct 22
  • New bg11229
    OP
    Any other tips?
    Oct 21 0
  • Anything spent for business is business expense. Since the company is registered in NY you have to pay NY tax
    Oct 20 0

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