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 2011?
Don't overlook these!
Updated for 2011
Travel Expenses
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Deducting Commuting Expenses
When You May Deduct Commuting Expenses:
You may deduct commuting expenses under the following circumstances:
- Business trips out of town:
- Transportation costs from your hotel to your first business call of the day and all other transportation costs between business calls are deductible.
- Using your car to carry tools (the additional cost rule).
- You can deduct costs which are considered additional costs over your normal commuting costs.
- Example: You rent a trailer for $5 per day to carry your tools to work. The trailer attaches to the back of your car.
- You can deduct only the extra $5 per day for the trailer not the normal cost of driving your car to work.
- Example: You always take the train to and from work at a cost of $5 per day. You now have to carry your tools to work, so you rent a trailer for $5 per day and attach it to the back of your car. Your car costs you $6 per day (one dollar more than the train).
- You can only deduct the $5 for the trailer. The extra $1 per day to drive your car over what the train costs is not deductible; it is still considered a commuting expense.
- If you carry the tools in the trunk of your car or the back seat, sorry, no deduction.
- Example: You rent a trailer for $5 per day to carry your tools to work. The trailer attaches to the back of your car.
- You can deduct costs which are considered additional costs over your normal commuting costs.
Next:
Travel Expenses: Temporary Work Locations and Commuting Costs
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 In Reporting Travel Expense Reimbursement on Form W-2
- Employee Accountable Plan
- Commuting Costs
- 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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