Home
Newsletter Archive
Introducing Our Firm
Tax Articles
Tax FAQ
Need Help?
Our Blog
Other Websites

Find us on Facebook
Follow me on Twitter
Connect on LinkedIn
Connect on Google+

How do I determine what is commuting vs. business travel?

September 13, 2006



Date:  Thu, 20 Apr 2006
From:  Bob

Hello Mr. Gray,

I am an outside salesperson. My home is in Mountain View. The corporate office is in San Francisco. Although I do not claim a home office deduction, I will not be going to the San Francisco office most days. My home will be my base of operations. How will I figure what is commuting and what is legitimate business travel? There is a desk I can use in San Francisco, but not my own office.

Thank you!
Bob

Answer

Date:  Fri, 05 May 2006

Hello Bob,

The tax rules arenít friendly for outside salespersons.

The ideal arrangement would be to live next door to the corporate office, and to start and finish each day there.

Go to the IRS web site (www.irs.gov) and get a copy of Publication 463. Especially study the section on transportation (starting page 13).

Since you donít have a "regular job location", I suggest that your transportation from your home to the first call of the day and from your last call of the day to your residence should be commuting and your other transportation for calls to customers are business transportation. Keep a log or diary listing the customers called and your beginning and ending mileage for your business transportation.

Since there are so many outside salespersons in our country, itís amazing that we have such poor guidance for their deductible expenses. Everyone is too busy making money to fight with the IRS to create case law for the rest of us.

By the way, some salespersons have been found to have no tax home, and canít qualify to deduct "out of town" travel expenses, despite constantly traveling on business!

Good luck!


Mike Gray

For answers to new questions, subscribe to our newsletter, Michael Gray, CPA's Tax & Business Insight by filling out the form below.

IRS Circular 230 Disclosure: As required by U.S. Treasury Regulations, you are hereby advised that any written tax advice contained on this website was not written or intended to be used (and cannot be used) by any taxpayer for the purpose of avoiding penalties that may be imposed under the U.S. Internal Revenue Code.

How do I determine what is commuting vs. business travel?

Home | Newsletter Archive | Introducing Michael Gray, CPA | Articles | Tax FAQ | Need Help? | Other Links


Michael Gray, CPA
2190 Stokes St. Ste. 102
San Jose, CA 95129
(408) 918-3162
FAX: (408) 998-2766
Join the Tax & Business Insight
for tax news!

subscribe html
unsubscribe text only

We respect your email privacy!