Housing as taxable income?

It depends. Here is a summary of the conditions:

“In contrast, business-provided lodging is far more restricted. Publication 15B, “Employer’s Tax Guide to Fringe Benefits,” discusses what types of employer benefits are excluded from taxation. It’s important to note that these benefits are generally not available to the self-employed, general partners, and more than 2% shareholder-employees of S-corporations. Those left include C-corporation employees and employees of the self-employed, partnerships, and S-corporations.

In order for employer-provided lodging to be excluded as a qualified fringe benefit, it must meet three tests:

1. It is furnished on the employer’s business premises (also must be the employee’s place of work);
2. It is furnished for the employer’s convenience (must be for a substantial business reason, other than to provide the employee with additional compensation)
3. It is a condition of employment (employees are required to live on the business premises in order to conduct their duties)

The clear intent of this fringe benefit is for special cases like farmhands and housekeepers. Even if a C-corporation arranged this for an employee (presumably the CEO), they would have a difficult time justifying either the “substantial business purpose” part of the employer’s convenience test, or the “conduct of their duties” part of the condition of employment test.

One caveat here is that any lodging costs not deductible as travel or excludable as a fringe benefit simply defaults to wages, with the resultant FICA responsibilities. If the employer is self-employed, the denied deduction is liable for SECA.”

Awesome… thanks very much!