02 Jun We get free rent to manage an apartment building. Is it taxable?

Q. We are hoping to starting anew, taking care of an apartment building and we get to stay there for free. Do we have to pay taxes for the housing?
— Happy worker

A. Congratulations on your new venture.

It sounds exciting, and we may have good news for you.

You are not required to pay taxes on the housing that is being provided to you if you meet three tests, said Martinsville-based certified public accountant Gail Rosen.

The first is that the lodging is on your employer’s premises, she said. Next, the employer must be providing this lodging for their convenience rather than for your convenience. And finally, your employer must require you to accept this lodging as a condition of your employment, Rosen said.

“For example, you would fit these criteria if you were required to live there to service an emergency repair in the middle of the night,” she said.

If you’re not sure that you meet the three tests, you should speak to your tax preparer.

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This story was originally published on June 2, 2022.

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