Commute

[S T]

Zeros post on OIH brought up an interesting point for me, but has to do with "travel" not OIH

I have a Home Health Care Nurse that is not "self employed", but on W-2.

Has a local office that t/p reports to for paperwork, time sheets, etc. at least once a week and sometimes more. Agency sends t/p to an "assignment" which can last 1 week or 1 year depending. T/p travels further to the assignment, than would to the office. Sometimes the mileage is within the 35 mile radius of metro area, and most times outside of the 35 miles radius of metro area. Since an employee on W-2 wages - we have never considered a Home Office.

What would be the travel expenses ?

This has always been a difficult situation for me to discern the proper handling.

Thanks for any comments,

Yes, I have reviewed Pub 17 and Pub 463 for those that might suggest those reference points

Sandy

[Gretel]

As far as the OIH goes, it would need to be required by the employer. I am not sure if this was part of your question.

Since all assignments are temporary and nurse also works where her home is plus has to report to the office I don't have any doubts that she can claim the travel expenses for first trip to assignment and last trip back home. If she travels home on weekends limitations would apply - the lesser of travel expenses or what she would pay if the stayed at job site.

Later would apply only if she meets the other away from home expenses. She might not have any expenses at job site. Maybe meals are included?

[JG EA]

....
Yes, I have reviewed Pub 17 and Pub 463 for those that might suggest those reference points

Sandy

But have you reviewed the code, regs, etc.?

Seriously though, if she had a tax home, I would say that on the day she goes to the office AND the job that the miles in between would be deductible within the metro area. On the other days it would be commuting. (Unless they view this the same as a union hall in which case it wouldn't be deductible - Pub 17 page 186.)

Normally when one goes outside the tax home area and if the job is expected to last 1 year or less the miles are deductible ( In which case I would have the taxpayer ask her client up front if he plans to die within the year.)

But since she works mostly outside the area then TTB 8-11 would help in determining the tax home.

If there is more than one place of
business, the tax home is the main place of business. If there is no
regular or main place of business because of the nature of work,
then consider the following to determine the tax home.

Just read Gretel's post but am posting anyway. It takes me a long time to post sometimes.

[erchess]

Metro Area

I don't see the metro area as relevant.

If she goes to the office and then the work site mileage office to work site is deductible regardless of how long the assignment lasts. If the assignment lasts over a year and she returns home at the end of her shift that mileage is not deductible unless she again stops at the office or some other business related stop on the way home.'

If she does in fact work less than a year at any given site she has a temporary work location and all her mileage is deductible. I would argue that in this line of work there is always the realistic expectation that the assignment will last under a year because the client could die or get disgusted with her or she with the client.

In order to say that she is traveling outside of her tax home in my opinion you would need to show that it is unreasonable for her to return home between shifts because of the distance and time. I don't see that the limits of the metropolitan area in which she resides come into play at all. If she does indeed meet the requirements for traveling away from her tax home then her mileage and any meals and lodging expenses become deductible.

[taxea]

Since she gets a W-2 this is employee business expense. Home to office is commute any other locations is mileage expense.
Home to first location is commute, additional locations is mileage expense.
In both cases return trip home from last location is commute.

It appears she uses her own car so a % of the car expenses would also be deductible.

As for the OIH...have her get a statement on company letterhead that says her home office is maintained for the convenience of the company. Keep a copy of this in your client file and be sure she keeps it in her file for as long as she is employed by this company and maintains a home office. If they refuse this request, the OIH is not deductible.

[Kram BergGold]

Depends

First,
Round trip mileage outside the metropolitan area is deductible as travel to a temporary job site. Travel within the metro area may or may not be deductible. It hindges on whether or not she has a regular place of business. This is a judgement call. Is her office a regular place of business? The conservative point of view would be no. She does not regularly go there to do work. The aggressive position is, it is her regular place of work. Good luck with that call.

[BP.]

any other locations is mileage expense.

additional locations is mileage expense.

a % of the car expenses would also be deductible.

TTB 10-5. Mileage or actual expense- not both.

[S T]

The issue

Thanks Kram, that I believe is what the issue is.
T/p "commutes" to the office. Maybe only 1 or 2 times a week to turn in the paperwork, staff meetings, case management. So is that t/p regular place of business? or is it the "client's home" ?

The t/p is not provided lodging at the client's home, usually works a 5 - 8 hour shift. T/p's maintains his own residence that he returns to each night or day.

For this W-2 client it seems an OIH could not be established, not required by employer, no administrative duties, etc.

Sandy

[AJsTax]

The fact

Thanks Kram, that I believe is what the issue is.
T/p "commutes" to the office. Maybe only 1 or 2 times a week to turn in the paperwork, staff meetings, case management. So is that t/p regular place of business? or is it the "client's home" ?

The t/p is not provided lodging at the client's home, usually works a 5 - 8 hour shift. T/p's maintains his own residence that he returns to each night or day.

For this W-2 client it seems an OIH could not be established, not required by employer, no administrative duties, etc.

Sandy

that the TP returns home after every shift makes ALL except those days he drives to the office commuting miles. It does not matter how far he drives. The days he goes to the office and then to the assignment, the mileage from the office to the assignment is deductible. From the job site to home is commuting. The days that he goes only to the assignment and then home is all commuting. It does not matter how far he commutes. It is his regular job. He is not living away from home and maintaining two residences. Thus no temporary work location.

[FEDUKE404]

Playing the mileage game

The fact that the TP returns home after every shift makes ALL except those days he drives to the office commuting miles. It does not matter how far he drives. The days he goes to the office and then to the assignment, the mileage from the office to the assignment is deductible. From the job site to home is commuting. The days that he goes only to the assignment and then home is all commuting. It does not matter how far he commutes. It is his regular job. He is not living away from home and maintaining two residences. Thus no temporary work location.

You are technically quite correct. In reality the trip "to the office" is probably the extra mileage separate from "going to work."

But you can play the system, within the rules. It's not unlike the person with a thirty mile commute who first "picks up the mail" at a post office near home in the morning and "drops off the mail" at the same post office on the way home every evening. Lots of deductible mileage and not very much commuting.

In today's world, many folks have daily commutes exceeding sixty miles. From experience, I know they can be extremely creative in coming up with ways to make the travel deductible. It's somewhat akin to playing chicken with the IRS. My guess is they usually win.

FE