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Figure B. When Are Transportation Expenses Deductible? ‘Most employees and self-employed persons can use this chart. (Do not use this chart i your home ‘is your principal place of business. See Office in the home.) Home: The place where you reside. Transportation expenses between your home and your main or regia place of work ae personal commuting expenses. ‘Regular or main jo: Your principal place of business, you have more than one jb, you must determine which ane is your regar or main jb. Ganider tne time you ‘pend at each, tho activity you have at each, and te income you eam at exch, “Temporary work location: A place whore your work assignment is reabstialy ‘expected to last (and doos in fact lst) ona year r less. Unlees you have a rogular place of business, you can ony deduct your trangportation expenses (0 a temporary work locaton outside your metropoftan area ‘Second job Ifyou regularly work at two or more places in one day, whether or not forthe same employer, you can deduct your transporation expenses of getting from ‘one workplace to another. If you do not go dirty from your frat job to your second Job, you can only deduct the transportation expenses of going direct from your fat J to your second job. You cannot deduct your transportation expenses between pur home and 2 second job en a day of ram your main ob, ‘hom fr thelr business, They paid $20 fr gach ‘it basket, or $240 teal, Three of Local Com anys executives tookthe it baskets home for thoi faites use, Bob and Jan have no Inde ‘sidered git fox puposes of the $25 mit. 1. Anitem that costs $4 oles and: ‘2 Has your name cleat and perms ently imprinted onthe pit, and Exceptions. The folowing items are not con- Incldental costs. incidental cote, suchas en- ‘raving on jewelry, or packaging, insuring, and ‘malin, are generally not incuded in detrmin- Ing te cot of at or poses of the fas A cost is incdental ony i does not add substan vale to the git. For example, the cost of git wrapping isan incidental cost. tion ever, the purchase ofan ernamontal basket or packaging fru not an Incidental cost tho Valve of the basket is substantial compared to the value of the fut. Page14 Chapter 4 Transportation ©. Isone ots numberof denitcl toms You wl dtu, Examples Shade pent, doo sas and past bags andeasee 2. Stone, dpa racks or cher promt ‘ato to bese on ve buses rom: Sescthe recpent tt you give a customer tckets to 2 theater performance or sporting event and you do not {99 with the customer to the performance or event, youhave a choice. You can treat the cost ofthe Uekets 05 ether agit expense or en en- totainmont expense, whichever isto your ad- vantage. You can change your treatment ofthe tick ts at a inter date by fing an amended return. General, an amended retum must be fled vwhn 3 years from the date the orignal ret was fled or within 2 yeas rom the tne the tax was pad, whichever is ar. tfyou go win the customer tothe event, you must eat the cos of he tickets as anentetain- ‘mont expense. You cannot choose, in his e350, {o teat the costo the teks a. git expense. This chapter discusses expenses you can de- duct for business transportation when you are not traveling away fiom home as defined in chapter 1. These expenses include the cost of transportation by ar, al, bus, tax, ec, andthe ‘cost of ding and maintaining your ea. raneportalion expenses inclide the ordinary and nocessary costs of ll of He foowing. '*Gaiting rom ore workplace to another in the course of your business or profession hen you are traveling within the cy or ‘general area thats yourtaxhome, Tax Dame's dine in chapter 1. ‘+ Visting cients or customers. ‘Going toa businoss meeting away from your regular workplace, Getting from your home to a temporary ‘workplace when you have one or more. regular places of work These temporary workplaces can be ethor within te area of your tax home or ouside that area, ‘Transporation expenses do not Inchide expen- 1888 you have while traveling away trom home ‘overnight. Those expenses are travel expences discussed in chapiar 1. However, if you use Your car whe traveling away from horne over ight, use the rules in this chapter to igure your ‘ar expense deduction. See Car Expenses, later. lustration of transportation expenses. Fic- ‘ura, eater, iustrates the rules that apply for ‘deducting transportation expenses. when you hhave a regular or main job away from your home, You may want to refer to it when decid- ing whether you can deduct your transportation exponces, Temporary work location. if you have one or more regular work locations away fom your home and you commute to a temporary work lo= Calon inthe same trade or business, you can educt the expenses of the dally round-trip ‘wansportaton between your home and the tem- porary location, regardless of distance. Hf your employment at a work location i eal- Ietoally expected to ast (and does in fact last) {or 1 year of less, the employment is temporary trless there are facts and ceumstancee thal would indicate otherwise. It your employment at a work locations real- teicaly expected to last for more tan 1 year of I there is no reabsc expectation that the em- ‘ployment wil let fort year of eee, the employ- tment isnot temporary, regardless of whether i ‘2ctualylasts for more than 1 year 1 employment at a work locaton inal is teaistcaly expected to last for 1 year oF less, but at come Inter date the employment is reale- cally expected to last more than 1 yeer, that ‘employment will be treated as temporary (un- fess there are facts and circumstances that would indleateothorviso) unt your expectation ‘Changes. It wil not be Ueaiad as temporary af ler the date you determine it wil ast mare than 1 yess. the temporary work location beyond the (gonorl area of you regular place of work and {ou stay oversight, you are traveling away rom Frome. You may have deductible vavel exper ‘see as discussed in chapter J. "No regular place of work. if you have no reg- lar place of work but ordinal workin tho mek ‘poli area where you We, you can deduct ‘ally transportation costs between home and a emporary work ste outside tt meopotan General meropoltan ares includes the ‘area within the cy Himits nd tw suburbs that ‘are considered part ol that metropolitan area, between you hoe and temporary work ss ‘tatu our mabopstan are, Testa onde: Shel commuting expnses wo plas ct wor ypu wots ts pases ore tay. hero et he ee ploy, You can dal he expnee Feend worilce oe oh Hower Hi {rte pore reason ou donot 90 ec foe cen aha you enna o- Sit more an te eos no ave cost ou go rey rom be tat orate Sco! “Transpettion expenses you have in going ‘betwoen home and a parttime ob on a Say off your main job are commuting expenses. fou cannot deduct them. ‘Armed Forces reservists. A meeting of an ‘Armed Forces reserve Units a second place of business If the meeting is held on a day on ‘which you work al your regular Job. You can de- uct the expense of getting from one workplace to the other as ust discussed under Two places cofwork. ‘You usually cannot deduct the expense if the reserve meeting is held on a day on which Yyoudo not work at your regular Job. nthis case, ‘Your transportation generally is a nondeductible Commuting expense. However, you can deduct. Your traneporation expenses it the location of the meating is temporary and you have one of ‘more regular places of work. if you ordinarily work in @ particular meto- pola arva but not al any specific lation and {he reserve meeting is held ate temporary loca- ‘ion outelde that metropolitan area, you can de~ ‘ct your ransporiation expenses. Ifyou Favol away from home overight to at tend a guard of reserve meeting, you can de- duct your vavel expenses. These expenses are sdecussed in chapter 1. you travel more than 100 miles away from home in connection with your performance of Services as a member ofthe reserves, you may. be able to deduct some of your teserve-elated ‘wavel costs as an adjustment to gross income rather then as anilemized deduction. For more Information, see Amey Forees Resorts Trav ling More Than 100 Miles From Home under ‘Special ules, in chaper 6. Example, You sometimes use your coll ‘hone to make busine calle while commuting to and trom work, Sometimes business asso- Ciales rie wth you to and from work, and you have a business discussion in the car. These actives donot chango the tip from personal to business. You cannat deduct your commuting ‘expenses, Parking fess. Foos you pay to park your ‘carat your place of business are nondeductibe ‘commuting expenses. You can, however, do- ‘duct business~elated parking fees when visi Ing a customer or cent. sera apy no eg oe ee fore cent eae iepenmbemen atts Same ante seal ceo eglana ee Car pools. You cannot deduct the cost of using your ea in a nonpeoit car pool. Do not in- clude payments you receive from the passer {gers in your income. These payments are con- Sidered reimbursements of your expenses. However, if you operate a carpool fora profi you must include payments from passengers in You income, You ean then deduct your Car ex- [Penses (using the rus inthis pubcation). Hauling tools or instruments. Hauling tools o instruments in your car while commat- ing to and from work does not make your car expenses deductble. However, you can deduct ‘any addiienal costs you have fr hauling tools or instruments (euch as for renting a raler you tow wih your car. Union members’ trips from 2 union halt. you get your work assignments ata union hall {and then go to your place of work, the costs of {eting from the urion halo your place of work fre nondeductibie commuting expenses. Al ‘though you need the union to get your work as- ‘slgnments, you are employed whore you work, hot where reunion hall islocatad. Office in the home. If you have an office in ‘your home that qualtfies as a principal place of business, you can deduct your dally ransporta- ‘ton enets between your home and anotier work location in the same trade or business. (Gee Publication 587, Business Use of Your Home, for information on determining i your home fee quafies as a principal place of business.) ‘examples show when you can deduct transportation expenses based on te locafon ‘of your work and your hone. Example 1. You regulary workin an offco in the cty where you Ive. Your employer sends You to a {-week Waning eoesion ata diferent fofcs Inthe same cy. You vavel creily trom Your home to the training fooaton an return Sach day, You can deduct the cost of your dally rooné-inp tansporation between your home fand the taining locaton. ‘Example 2, Your principal place of busi. ness isn your heme. You can deduct the cost CChapter4 Transportation Page 18 Items included in _cents-per-mile rate. The Regular use in your trade or business. A vehicle is cents-per-mile rate includes the value of maintenance and regularly used in your trade or business if at least one of the foll ‘conditions is met. rea for the vehicle, Don't reduce the rate by the oying. a cea value of any service included in the rate that t * AtleastS0% ofthe vehicle's total annual mleage stor rove. yoy, con carcded in the ral tha ee ‘your trade or business. provided for the vehicle by using the General Valuation Bule, earlier. * You sponsor a commuting poo! that generally uses the de +? For miles driven in the United States, its territories and vehicle each workday to drive at least three employ- smioatone para aia Moe cree i i i } Value of fuel you provide. it you dont pro- © The vehicle is used in your trade or business" tmthe basi of aloft fans and eeumetances.I- vide fuel, you can reduce the rate by no more than 5.5 frequent business use of the vehicle, such as for occa- sional trips to the airport or between your multiple business premises, isn't regular use of the vehicle in your trade or business. For special rules that apply to fuel you provide for miles driven outside the United States, Canada, and Mexico, see Regulations section 1.61-21(e)(3)(i)(B). The value of any other service you provide for a vehicle f is uded in the cents-per-mile rate. Use the general Mileage test. A vehicle meets the mileage test for a cal- isn't incl -per-mi ral tender year bath ofthe following requirements are met. valuation rule to value these services, ‘The vehicle is actually driven at least 10,000 miles during the year. I you own or lease the vehicle only part ofthe year, reduce the 10,000-mile requirement Under this rule, you determine the value of a vehicle you Popes ovide fo en ernie a by multiplying * The vehicle is used during the year primarily by em- ‘each one-way commute (that is, from home to work or ployees. Consider the vehicle used primarily by em- from work to home) by $1.50. If more than one employee ployees if they use it consistently for commuting. Don't commutes in the vehicle, this value applies to each em- treat the use of the vehicle by another individual ployee. This amount must be included in the employee's whose use would be taxed to the employee as use by —_ wages of reimbursed by the employee, the employee. ting rue if all the following re- For example, if only one employee uses a vehicle dur- cl can use the commuting ru it a ing the calendar year and that employee drives the vehicle ‘Wirements are met, al least 10,000 miles in that year, the vehicle meets the _° You provide the vehicle to. an employee for use in your mileage test even if all miles driven by the employee are. personal, Consistency requirements. if you use the ccenis-per-mile rule the following requirements apply. * You must begin using the cents-per-mile rule on the first day you make the vehicle available to any em- Ployee for personal use. However, if you use the com- ‘muting rule (discussed later) when you first make the vehicle available to any employee for personal use, Yuan change to the cents-per-mile rule on the first {day or which you don't use the commuting rule, * You must use the cents-per-mile ru fo all In which you make tho vehicle avalible torn ene Bloyee are the vehicle qualifies, excep that you can se the commuting rule for any year during which ace ehicle qualifies under the commuting rele, However if the vehicle doesn't qualify for oy $ers-Bet le rule during a later year, you can use for ‘that year and ther Vehicle then Saree any other rule for which the . ‘You must continue to use the cents. “per-mile rule een vehicle Use of this rule) and , errs a prsfary reason forthe replacements to, reduce fed- trade or business and, for bona fide noncompensatory business reasons, you require the employee to com- mute in the vehicle. You will be treated as if you had ‘met this requirement ifthe vehicle is generally used ‘each workday to carry at least three employees to and ‘from work in an employer-sponsored commuting pool. You establish a written policy under which you don't allow the employee to use the vehicle for personal Purposes other than for commuting or de minimis per- sonal use (stich as a stop for a personal errand on the way between a business delivery and the employee's home). Personal use of a vehicle is all use that isnt for your trade or business. The employee doesn't use the vehicle for personal purposes other than commuting and de minimis per- sonaluse. = a cutee I this vehicle is an automobile (any four-wheeled ve Vehicle. For this Vehicle, including an {for use on public st

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