FlyerTalk Forums - View Single Post - Give it all up for a year?
View Single Post
Old Oct 7, 2005 | 12:21 am
  #19  
chemist661
In Memoriam
 
Join Date: May 2001
Location: Southern California
Programs: Hertz 5 star, Priceline Hotel bidder. AA PLT, 1MM.
Posts: 2,910
Get the money as "per diem" expenses. Possible it's non taxable.

I would consult a tax advisor. One of my relatives did consulting for 6-10 months at a time after his early retirement. He got "bored" playing golf, etc.

Though he was financially set, he got to experience living in different locations, etc. When his assignment was done, his wife & he would fly to someplace nice like Hawaii for vacation. ^

He would pick assignments that gave him maximum per diem & moderate wages. The "per diem" is not taxable & of course, his wages were. He would get say $200 per day (for the per diem) & he would rent a nice 1 bdr apt that was in a decent area & not overly expensive. He would buy used & inexpensive furniture. He would sell it at the end of his term. His rent would be approx $600-800/month but his per diem would be $4.2K (21 working days times $200 equals $4200 for the month). Say his rent/utilities/food would be $1000-1200 for the month. He could pocket the rest tax free. (He may have done a 30 day per diem & work for lower wages. I'm not clear on that point)

I am not a tax person so my info may/may not be correct for your situation. You could ask if can get all the expenses in a "per diem" package. The "per diem" money may be non taxable.

Last edited by chemist661; Oct 7, 2005 at 12:25 am
chemist661 is offline