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There was a thread a bit back about IL vs NV state taxes. I'm in a similar situation and I'm very confused on how I should handle things.

Here is my situation:

I'm self-employed and live in AR. In 1999 and Jan-Nov 2000, I traveled occasionally to my client's site in MS (255 miles, 26 days in 1999, 21 days in Jan-Nov 2000).

The client pays me by the hour, reimburses me $0.31/mile for travel, long distance charges, and pays $26/day 'per diem' for meals.

In 1999, I reported the mileage and per diem as regular income (even tho it wasn't reported on my 1099) and then took the deductions... mileage on Sched C Line 10, and meals on Line 24b, subject to 50% limitation.

In Dec 2000, my client started providing me with an apartment near their location. They pay the rent and all utilities except for the phone.

My questions are:
(1) In 1999, was I correct in the way I reported the mileage and meals? If so, can I do the same in 2000?
(2) In 1999, could I have used 50% of the $30/day 'Federal Meal & Incidental Expense' rate? and if so, can I use the M&IE rate in 2000?
(3) In 1999, should I have reported MS income, even tho I was only there 26 days during the year and staying in a hotel? if not, will I have to in 2000?
(4) Going forward, will I have to report MS income now that I will be there most weeks Mon-Fri? (returning to AR on the weekends)
(5) Can I deduct other costs associated with the Apartment as businss expenses? For example, I need/want to furnish the Apartment with a Washer/Dryer, Furniture, TV, VCR. And if so, are they Section 179 eligible?
(6) Does owning a house in another town in MS (which is a rental and is 90 miles from the work location) throw any other wrenches into the mess?
(7) Are any of the client-paid apartment costs considered 'income' that also may or may not be deductible expenses?
(8) Should I just move to TN where there are no state income taxes? :-z

I know there are a lot of questions and I probably need to talk to a tax-smart CPA both here in AR and in MS... but thanks for any advice you can offer...

Jeff
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