I have a client that is cleaning debris in hurricane damage area along with his wife. They travel to south Louisiana and southern Florida hauling debris to various dumps. They have their residence in northwest Louisiana were they have no hauling business jobs & they both receive pensions. In 2005 their tax home would have been in Florida were they earned the most money. They have a travel trailer were they reside while on their different assignments. Could I depreciate the travel trailer while they were away from their tax home? If so what is the class life of the travel trailer? I can not find this anywhere. A House trailer for farm laborers is 7 year property or would this be considered like a mobile home 27.5 year property. I am a little uneasy about this any help would be greatly appreciated.
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I don't think you can depreciate the trailer. It's like a second home.Originally posted by ExponetEverybody should pay his income tax with a smile. I tried it, but they wanted cash -
Basing it on this information from Quickfinders
I am very concerned about this since I cannot find anywhere in the tables for travel trailers but it sounds like they have temporty assingments.
Two or More Business Locations
Travel Expenses Business Locations—Two or More - When the taxpayer regularly works in more than one location, the tax home is the area where most of the time, income or degree of business activity occurs.
Only the travel expenses to and from the secondary place of business location are deductible. Business meals and lodging expenses would also be deductible for overnight stays at the taxpayer’s secondary business location.Comment
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Even if they are on temporary assignment, why would you want to depreciate the travel trailer. It is a living accomodation- a second home. If it was a hotel you would claim the lodging expenses. A travel trailer, you can claim the mtg interest ; but why depreciate.Originally posted by ExponetEverybody should pay his income tax with a smile. I tried it, but they wanted cashComment
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Travel away from tax home
Would it not be considered a lodging expense?
Business meals and lodging expenses would also be deductible for overnight stays at the taxpayer’s secondary business location.Comment
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Is that travel trailer just for business or did they buy it as a second home so that they can roam about the country.Originally posted by Exponet
Maybe some one can give some thoughts on this. I still think you cannot depreciate it.Everybody should pay his income tax with a smile. I tried it, but they wanted cashComment
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I have a client that does lazer engraving on signs, badges, etc. They travel around the country going to rallies and craft fairs in a motor home selling their product.
They also have an office location that they rent.
I have been depreciating the motor home they travel in for years because it is used for business. I have always classified it as a work trailer because the prior accountant did so, so I kept it the same because I didn't want to raise any red flags.
As owners, they are not entitled to use the per diem method, so I don't see why they couldn't depreciate it. If they stayed in a motel, they could deduct the motel.
My clients never stay very long in one place. I do know that there are limitations for temporary locations of work - 6 months, I think.
The prior accountant used ten years. I kept it the same, but I really don't think ten years is right. Don't know the answer to the number of years.
CherylComment
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A lot of construction guys and gals have work trailers to stay in while on jobs.
I don't see any reason either to not depreciate the trailer if it's just used for business.Comment
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