Paid by housing, taxes?

[Fredjikrang]

So, a question. In jobs in which part of the pay is housing, is that taxable? For instance, RA's. Do they have to pay tax on their "pay" that is housing? If they do, how is it figured? Anyone know or have experience with this?

It seems like it isn't taxable, but bordering on tax evasion.

An example of why it might not be taxable. Many companies provide food or other amenities to their employees, and the employees are not taxed on this.

An example of why it might be tax evasion. If I have a big housing company, I could give someone a house in exchange for their work over the next five years, but since no cash changes hands, it might not be reported?

[Digit]

From what I've read, it seems that the vast majority of people who have won beautiful and insanely expensive dream homes in HGTV's dream home giveaway have had no option whatsoever than to sell the house before the next April 15 because they couldn't afford the taxes on it.

[Dragon Lady]

But winning a house and being given free rent are two different things. I'll ask an accountant friend of mine.

[Digit]

Looks like a company like HGTV would probably report the fair market value of the house to the IRS and give you a 1099-MISC stating the value that they told Uncle Sam what they gave you was worth, and if your boss paid you by a non-cash means like housing, your boss could use a 1099-MISC instead of a W2 to make sure that got taxed.

[Fredjikrang]

The only difference that I can see is that they aren't giving me a good, but a service. So, that is why I am not sure if it is taxable or not.

[Craig Jessop]

I was given free housing this summer at Aspen Grove. I don't have to pay taxes on its value (Insert joke about how the cabins we lived in sucked. Because they did. So the rent saved was negligible.)

[Dragon Lady]

My accountant friend said,

"Those are quite extremes. There is a big long explanation, and if they are wondering because of the house situation, they should hire an accountant to go through those details... but the short answer is for the RA, its considered a "de minimis fringe benefit" and is provided for the employers benefit.

I'm sure many could argue the point of view in changing the scale to the example shared... but that would require a lot more time to research and explain. "

[Fredjikrang]

That's good enough for me! Thanks Dragon Lady and Craig!