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

1. S OLUTIONS + P E RSPE CTIVE

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. 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.  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. #1: Commute via train from main home
to regular work location.
S OLUTIONS + P E RSPE CTIVE

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. 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. #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.  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.  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. #3: Same facts as in example 2, except
that the job in Los Angeles is temporary.
S OLUTIONS + P E RSPE CTIVE

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.  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.  Speak to your tax professional for guidance
BEFORE YOU TAKE THAT JOB….
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15. S OLUTIONS + P E RSPE CTIVE
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