Did you know that you can deduct "commuting" expenses between your home and temporary job locations? Daily transportation costs between your home and a regular work location are nondeductible commuting expenses. However, you may be able to deduct costs of going to and from your home and a temporary (not regular) job location if your work fits one of the following descriptions:
(1) You have one or more regular places of business outside your home, but sometimes travel to temporary work locations in the same trade or business.
(2) Your home is your principal place of business and you travel to other regular or temporary work locations. In order for your home to be your principal place of business you must meet any one of the three tests for deducting expenses of a home office. These include (a) a seperate unattached structure that is used exclusively and on a regular basis in connection with your business; (b) a home office used for meeting patients, clients, or customers in the normal course of your business; or (c) a home office used exclusively and on a regular basis as your principal place of business.
Under rules that went into effect in 1999, a home office qualifies as a principal place of business if it is used to conduct administrative or management activities of the business and there is no other fixed location where substantial administrative or management activities of the business is conducted.
(3) You sometimes travel to a temporary work location outside the metropolitan area in which you live and normally work.
If you have any questions about whether you are entitled to deduct your work-related travel expenses, please give me a call.
BACK TO TAX TIPS LISTING