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Question 2:

I live and work on the east coast, 800 miles away from my employer in the midwest. I work from my house, where I have converted a large basement room for exclusive office work where I work all the time. My address is also listed as my office address (no personal use at all). This is my primary and only place of work. I do this because it is convenient for my employer to have me represent them as an east coast office. For this, my employer pays me a monthly amount considered as "rent" for the use of my space and my computer and fax equipment (it was more convenient for them to have me
use what I already had instead of purchasing brand new things for them). This "rent" has been reported in box 1 of 1099-MISC.

Can I deduct this "rent" from my taxable income?

I can see no reason to deduct the rent-- it's income.

It certainly sounds like you could take a home office deduction however, which will probably allow you to deduct expenses which approximate the "rent" your employer is paying you.

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