April 6, 2010
Tax Implications of Visits and Sabbaticals
John A. Miller (Idaho) & Robert Pikowsky (Georgia Institute of Technology) have posted Taxation and the Sabbatical: Doctrine, Planning, and Policy, 63 Tax Law. ___ (2010), on SSRN. Here is the abstract:
It is common practice for faculty who go on sabbatical leave to take up temporary residence at another location during the sabbatical period. This temporary relocation has significant income tax implications. These tax implications also arise when a faculty member at one institution serves as a visiting scholar at another institution (a scholar’s visit). This article describes the current income tax treatment of sabbaticals and scholar’s visits and develops the tax planning hurdles and opportunities posed by this treatment. It concludes with a consideration of the policy issues raised by this state of affairs.
Jack agreed to let me share with the broader tax community his post this afternoon on the TaxProf Discussion Group:
[N]early all meals while serving as a visiting professor are likely deductible (subject to the 50% rule and to the rules with respect to miscellaneous itemized deductions). This includes weekends and holidays. I won’t try to set out all of our analysis here but just note that this outcome arises from the interplay between § 162(a)(2) and the rules with respect to location of one’s tax home. We agree with those who think this is poor policy. Nonetheless, we think the law is fairly clear.
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