McZaki

The "tier 1 global consulting firms" generally pay minging as compared to the similar roles in the industry. The main reason for their “discriminatory remuneration” is due to the fact that they offer diverse experience with tier one companies and public sector clients and the breadth of experience gained are unmatched compared to a routine day job. Generally, once someone has gained enough experience they end up joining one of the clients on a very favourable terms, it’s not uncommon in our world to double or treble the earnings after a few years because of the quality and diversity of experience that one brings to the table.

Another reason for a comparatively modest remuneration offered in the US is that my area of expertise is Technology and there are thousands of Indians working for our member firms in India and elsewhere in the world with similar skill set and their aspiration to experience life in the west for any cost has given our firms in the UK & US further ammunition to offer rigid compensation packages. Additionally, anything between 120k – 170k is pretty standard for a Consulting Manager across the spectrum. One of the key reasons I’m being better off financially in Dubai is that I’m on a UK/US based package for my role albeit there are no taxes in Dubai.

I have the option to choose any location on the west or east coast and earn same amount of money, it’s actually my preference to be based in SanF mainly due to the reason that my siblings are settled in Sacramento.

McZaki

Yes, all for the greater good

Also, when I'm on a client site (approx 70% of the time), all out of pocket expenses are reimbursed so I can hire a car and when I’m not on a client site then I don’t have to turn up at work unless there is an internal meeting, I can work from home/remotely – another motivation to stay put during the idle hours is that presumably it would not be easy and cheap to find a parking in the Financial district!

McZaki

[QUOTE=N1cky;10487579]
That looks more reasonable

Many thanks

MMcD

In that case you can save on your out-of-pocket rent expense:
Your "home office" becomes a deductible item on your annual tax return - meaning a certain percentage of the total sq. footage of your living quarters is designated as used solely for business purposes; the rent you pay can be partly allocated to this requisite expense!

RoadWarriorFromLP

Home offices are red flags for IRS auditors. And as an employee of a firm, the OP wouldn't be able take it, anyway.

MMcD

1. That I know
2. Really? That I didn't know - and I'm surprised

GeoffM

I don't think that latter statement is correct. IRS

Sally Redux

It's sounding like a good career move now that you have explained how it works.

RoadWarriorFromLP

For an employee's home office to qualify for a deduction, "your business use must be for the convenience of your employer."

http://www.irs.gov/Businesses/Small-...fice-Deduction

A home office used for the purpose of avoiding a commute into town won't pass the smell test.

Bob

I think that might be a bit short, though of course worth checking rates and availability in either where you plan to work or where you plan to live.

I can't say what the rates are in that area, but I'd be impressed if they are cheaper than where I am. Burbs of Boston you're looking at $1500 a month for 2-3 half day weeks, but further out in the burbs it's between $1200-1500 and 3-5 half days.

That's if you can get them in, the popular ones can and do have waiting lists, but further out in the burbs it is much easier to find smaller indie places.

So if you can get a place for $400, that's awesome.

Also, broadband will be more like $50 for decent speeds, but really, just get it as a triple bundle with phone and TV.

Don't forget to factor start up costs. With no US credit history, you might be asked to put down a deposit for any/all of the utilities, anything from $50-600. You might not be asked, but better to be prepared for it.

GeoffM

OP said he's at client site 70% of the time and only goes into the office for meetings. That suggests no permanent desk and thus a candidate for the deduction.

N1cky

If you have to be at a client site 70% of the time, how are you going to do this by using public transport? Unless it's only one or two clients that are already set in stone and you know where they are.

It's one thing commuting to and from a permanent place of work on public transport, totally different having to be in different places at different times. It's also a totally different matter if you are thinking you can take the car and your wife can manage without some of the time.

I now see the need for two cars again.

AmerLisa

Landline and broadband for $20?

Brit In TN

Have you taken into account furnishing your rental property, and not to forget those luxury items such as a telly?
Furnishing a couple of bedrooms, a living room and any additional space can soon mount up.

RoadWarriorFromLP

Telecommuters can't take the deduction; for the home office to be deductible, it needs to benefit the employer.

This type of arrangement makes him sound like a telecommuter. He's within relatively close proximity to the office, and the purpose of his home office is to avoid the commute. Taking the deduction would be a bad idea.

Agreed. Public transit in the Bay Area is good for serving certain locations, such as downtown SF, and it can be useful for some commuters, but it isn't a viable option for traveling throughout the region. If the client sites are outside of SF, and not proximate to a BART station, then a car will most likely be needed.

And I suspect that the employer would not look kindly upon reimbursing the OP for hundreds of dollars of car rentals per month for local travel. He'll probably need to have his own car.