Anonymous wrote:It's possible. It's also complicated.
Having employed nannies for the first 12 years of parenting, in your shoes I would rent that out separately and use that income to help offset the costs of a nanny.
There were MANY times when I was very glad we didn't have a live-in nanny.
- I wanted privacy when our workdays were over. I didn't want full family immersion of the nanny.
- I didn't want to become the nanny's family. I didn't want to be their primary support for medical and emotional needs or financial crises or car trouble or romantic breakups or....
- I'm very glad that when we ended a relationship w/ a nanny we didn't have the additional challenge of having to move them out, wait for them to find another place to live, feel guilty that not only was their job ending they were also losing their home, etc...
It can be a win-win. It can also be a HUGE nightmare. And you won't know until it's too late which version you've gotten.
I also think that for nannies, employers are often pretty unrealistic about the financial offset that's reasonable when housing is provided. I think that's a difficult thing to work through. Not impossible, but hugely subject to the people and specifics involved.
Just my two cents...
You sound like the boss from hell if the job requires they live in, you cannot deduct rent.