Any amount you pay to an employee (including the value of any assistance you provide to the employee) for the acquisition, use or right of use of a residence is taxable.

For example, you may pay an employee an amount (or provide an employee assistance) so that he or she can pay or reimburse:

• mortgage interest;
• property taxes;
• insurance;
• costs incurred to keep the former residence in good condition after the move;
• higher mortgage interest or bridge financing required with respect to the new residence.