Business Deductions
- Amortization
- Business Losses and Net Operating Losses
- Car and Truck Expenses
- Day-Care Services
- Depreciating Business Property
- Depreciating Your Car
- Domestic Production Activities Deduction
- Health Insurance Deduction
- Home Office Deduction
- Meal and Entertainment Expenses
- Organizational Costs and Start-up Costs
- Qualified Plan Awards
- Schedule C Expenses
- Section 197 Intangibles
- Should You Sell or Trade in Your Car?
- Start-up Costs
- Travel Expenses
More Tax Topics
- Business Structures
- Hiring Workers
- Retirement
- Top Tax Myths
- Per Diem Rates - IRS Publication 1542 Oct 2011 for Travel Within the Continental U.S (for employers who pay a per diem allowance to employees)
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Need Some Deductions for 2012?
Don't overlook these!
Updated for 2012
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What Are Commuting Costs?
Transportation costs between your home and business are generally considered nondeductible commuting expenses.
However, if you are self-employed and maintain a home office as your principal place of business (i.e. you do administrative work there, such as bookkeeping, filing, prepare financial reports, prepare invoices), transportation costs between your home office and your client/customer/prospect locations are deductible.
The commuting expense rule applies whether you are:
- An employee, or
- Self-employed and have a business location outside your personal residence. However, as mentioned above, if you maintain a home office the cost of traveling between your home office and your customers/clients/prospects, are deductible.
No transportation deduction is allowed in the following situations:
- You get jobs through a union hall:
- The cost of commuting from the union hall to assigned jobs is not deductible.
- You join a car pool:
- The cost of driving yourself and your passengers to work is not deductible.
- Business discussions:
- While on your way to work you discuss business. Sorry, no deduction allowed, your transportation cost is still considered a commuting expense.
- Expenses while commuting to your regular place of business:
- The costs of phone calls from your car to a business associates while on your way to work are not deductible. The IRS says any expenses incurred while you are commuting are not deductible. (see exceptions)
Next:
Travel Expenses: Deducting Commuting Expenses
Related Links
- Domestic Per Diem Rates
- What Are Travel Expenses?
- Who May Deduct Travel Expenses?
- Items Included in Travel Expenses
- Tax Terms You Need to Know-Ordinary and Necessary Expenses
- Tax Terms You Need to Know-Tax Home Defined
- Tax Terms You Need to Know-Tax Home Example
- Tax Terms You Need to Know-Transient and Away From Home Test
- Personal Expenses
- Expenses of a Spouse, Dependent, or Other Individual
- Entertainment Expenses of Non-Employees
- Entertainment Expenses of Non-Employees-Example
- Employee Travel Expenses
- Employer Error Reporting Travel Expense Reimbursement on Form W-2
- Employee Accountable Plan
- Temporary Work Locations and Commuting Expenses
- Temporary Work Location-Example
- What if Your Expectations for the Length of Time to Work Changes?
- Professionals Traveling to Clients' Sites
- Business Conventions and Seminars
- Investment Conventions
- Video Tapes Received at a Business Discussion
- IRS Meal Allowance
- If Employer is a Relative
- Daily Meal Allowance Amount
- Travel Expense Records You Must Keep
- Transportation Industry Workers
- Claiming the IRS Meal Allowance
- Travel By Cruise Ship
- Business-Vacation Trips Inside the U.S.
- Business-Vacation Trips Outside the U.S.
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