Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
S OLUTIONS + P E RSPE CTIVE
YOUR TAX HOME
Your “Main Home,”
where you sleep at night,
may not be
considered
your “Tax Home.”
S OLUTIONS + P E RSPE CTI...
YOUR TAX HOME
Tax Home Definition:
Generally your normal place of business,
where you report for work each day.
IF: You ...
 IF: You commute long
distances for work.
SIGNIFICANCE OF YOUR TAX HOME
S OLUTIONS + P E RSPE CTIVE
THEN: Commuting expen...
#1: Commute via train from main home
to regular work location.
S OLUTIONS + P E RSPE CTIVE
EVEN IF: While on train, you
make calls, read reports, or
respond to emails...
#1: COMMUTE VIA TRAIN FROM MAIN HOME TO
RE...
BUT IF: You commute to a TEMPORARY work location, like
a client’s office
THEN: That same train ride becomes deductible.
...
#2: San Francisco is main home, but take a
permanent job in Los Angeles.
Choose not to move family from San
Francisco to L...
 IF: You commute to the L.A.
work location each week
and get apartment near
main work location.
 THEN: The commuting
exp...
 IF: You commute to a
temporary work location
 THEN: Your tax home
changes
 Temporary work location
is a job or project...
#3: Same facts as in example 2, except
that the job in Los Angeles is temporary.
S OLUTIONS + P E RSPE CTIVE
This position is
expected to last only
8 months…
#3: SAME FACTS AS IN EXAMPLE 2, EXCEPT
THAT THE JOB IN LOS ANGELES IS TE...
 The commuting expense
from San Francisco to Los
Angeles, and the meals
and lodging, would be tax
deductible.
#3: SAME FA...
 Speak to your tax professional for guidance
BEFORE YOU TAKE THAT JOB….
S OLUTIONS + P E RSPE CTIVE
S OLUTIONS + P E RSPE CTIVE
G U M B I N E R S A V E T T I N C .
1 7 2 5 C L O V E R F I E L D B L V D .
S A N T A M O N I ...
Upcoming SlideShare
Loading in …5
×

Tax deductions for commuting expenses

448 views

Published on

A new video outlining three simple steps to understanding tax deductions for long distance business commuting.

Published in: Business, Travel
  • Be the first to comment

  • Be the first to like this

Tax deductions for commuting expenses

  1. 1. S OLUTIONS + P E RSPE CTIVE
  2. 2. YOUR TAX HOME Your “Main Home,” where you sleep at night, may not be considered your “Tax Home.” S OLUTIONS + P E RSPE CTIVE
  3. 3. YOUR TAX HOME Tax Home Definition: Generally your normal place of business, where you report for work each day. IF: You do not have a main work place due to the nature of your business THEN: Your tax home is where you regularly live S OLUTIONS + P E RSPE CTIVE
  4. 4.  IF: You commute long distances for work. SIGNIFICANCE OF YOUR TAX HOME S OLUTIONS + P E RSPE CTIVE THEN: Commuting expenses are not tax deductible,  This is true no matter how far your regular work place is from your home.  This is true even if you work during your commute.
  5. 5. #1: Commute via train from main home to regular work location. S OLUTIONS + P E RSPE CTIVE
  6. 6. EVEN IF: While on train, you make calls, read reports, or respond to emails... #1: COMMUTE VIA TRAIN FROM MAIN HOME TO REGULAR WORK LOCATION S OLUTIONS + P E RSPE CTIVE EVEN IF: You stay in hotel or apartment several days a week to be closer to main work location.  THEN: Cost of the train is a non- tax deductible commuting expense.  THEN: It is still considered a non-deductible expense because your long distance work location is considered your tax home.  THEN: You cannot deduct the cost of meals and lodging while at your tax home.
  7. 7. BUT IF: You commute to a TEMPORARY work location, like a client’s office THEN: That same train ride becomes deductible. #1: COMMUTE VIA TRAIN FROM MAIN HOME TO REGULAR WORK LOCATION S OLUTIONS + P E RSPE CTIVE It is the commute between your main home and your tax home that is expressly prohibited as an expense.
  8. 8. #2: San Francisco is main home, but take a permanent job in Los Angeles. Choose not to move family from San Francisco to Los Angeles. S OLUTIONS + P E RSPE CTIVE
  9. 9.  IF: You commute to the L.A. work location each week and get apartment near main work location.  THEN: The commuting expense, cost of meals and cost of lodging are not deductible ― even though you are away from your main family home. #2: SF IS MAIN HOME, BUT TAKE A PERMANENT JOB IN LA. DO NOT MOVE FAMILY FROM SF TO L A. S OLUTIONS + P E RSPE CTIVE Since this is a permanent job, with a main work location in Los Angeles ― Los Angeles is now considered your tax home.
  10. 10.  IF: You commute to a temporary work location  THEN: Your tax home changes  Temporary work location is a job or project expected to last for one year or less #2: SF IS MAIN HOME, BUT TAKE A PERMANENT JOB IN LA. DO NOT MOVE FAMILY FROM SF TO L A. S OLUTIONS + P E RSPE CTIVE  IF: Your tax home does not change THEN: Main office is tax home IF: No main office THEN: Your tax home is regular residence
  11. 11. #3: Same facts as in example 2, except that the job in Los Angeles is temporary. S OLUTIONS + P E RSPE CTIVE
  12. 12. This position is expected to last only 8 months… #3: SAME FACTS AS IN EXAMPLE 2, EXCEPT THAT THE JOB IN LOS ANGELES IS TEMPORARY. S OLUTIONS + P E RSPE CTIVE Since this meets the one year or less requirement of a temporary work location, your tax home is not considered to have changed to Los Angeles.
  13. 13.  The commuting expense from San Francisco to Los Angeles, and the meals and lodging, would be tax deductible. #3: SAME FACTS AS IN EXAMPLE 2, EXCEPT THAT THE JOB IN LOS ANGELES IS TEMPORARY. S OLUTIONS + P E RSPE CTIVE
  14. 14.  Speak to your tax professional for guidance BEFORE YOU TAKE THAT JOB…. S OLUTIONS + P E RSPE CTIVE
  15. 15. S OLUTIONS + P E RSPE CTIVE G U M B I N E R S A V E T T I N C . 1 7 2 5 C L O V E R F I E L D B L V D . S A N T A M O N I C A , C A 9 0 4 0 4 3 1 0 - 8 2 8 - 9 7 9 8 G S C P A . C O M

×