When are transportation expenses deductible?

[mariaefletes]

I have a client that work for the union, he works at different job sites but not on the same day. He may work at one site for a few months, then get sent to work at a different location. Is his mileage deductible?

[KBTS]

Refer to page 10-2 and 10-4 in TTB. Also see IRS Pub 463.

[Koss]

Deduction

Q: When are transportation expenses deductible?

A: In the year that they are paid.

(Unless you are using the accrual method of accounting.)



Okay, that was pretty lame.

This actually sounds complicated. Maria said the client works for the union. That sounds like he is visiting worksites, to conduct business on behalf of the union, or to observe working conditions, or... well, I'm not sure.

I'm just pointing out that there is a huge difference between working at a construction site, or a factory, where you happen to be a member of a union, and actually working for the union itself.

More facts are needed. Most or all of his mileage might be deductible, if his principal workplace is a union office, and he travels to various different sites on union business.

Or none of it might be deductible, if he doesn't have a permanent work location.

Or it might even get into some really complicated rules, and gray areas, that deal with temporary assignments.



BMK

[mariaefletes]

When are transportation expenses deductible?

I have, my understanding is that it is deductible only if the taxpayer drives from a main job to the temporary job. Is this correct?

[dan doshan]

As previously mentioned. Transportation expense for use of your vehicle can get very complicated. You really can't answer your question without knowing all of the details involved with each particular client situation.

[Gary2]

Read the Bogue decision from last year. It has a thorough analysis.

[erchess]

Specific Question

Maria asked one specific question which I can answer. She said that she thinks that only mileage from a primary work location to the second one is deductible and she asked if that is correct. The short answer is no that is not correct. Mileage from first work location to a second location in the same day would usually be deductible i.e. it's likely the other tests are met. However it's also possible to have a temporary job location for one or more whole days and under certain circumstances the mileage may be deductible even if it's less than the nondeductible mileage to his normal regular place of work.

There are three bright line rules to keep in mind about mileage. One, the taxpayer must keep a log book that is contemporaneous and detailed. For more on those standards see TTB or the IRS Pub referenced earlier. Two, the taxpayer must have a main tax home. Three the taxpayer must have a regular place of work if he or she is an employee. Determining two and three can involve many grey areas - too many for a bulletin board post.