Travel expenses

[Kent]

I am new here and did a search before making this post, but hope I am not repeating something that has already been asked. I have a client who was employed part-time as a full-time student in Utah for a couple years. He quit that job and got trained for about 3 weeks in how to sell home security systems. He was then sent to California for a few months selling home security systems door-to-door and then he moved back to Utah. His earnings for the few months he was selling home security systems were reported to him as Non-employee compensation on a Form 1099-Misc.

Should he be able to claim his mileage from Utah to California and his return flight to Utah (his wife drove the car back early)? Could he claim all mileage driving from where he lived in California to the various neighborhoods to sell door to door? Can he claim any per-diem expenses while in California for food and housing?

Thank you for any assistance.

Kent

[taxmom34]

just giving this a bump, new poster should be given some help.

[Kent]

Wow, 35 views and no replies. No wonder I am struggling with the answer.

[WhiteOleander]

I will say no mileage deduction. His tax home was in Calif. He did not have a tax home in Utah while he worked in CA. So, no deductions. He was not away from home overnight.

[DonB]

My 2 cents-- His travel to California would be moving expense that does not qualify because of the 9 month full time work requirement. Work travel in California must be reduced by commuting (back out distance from home to first contact, and from last contact to home). Return trip to Utah might be a moving expense but I'm not sure. No expenses for food and lodging as his tax home was California.

[AJsTax]

Wait a minute!

He was an Utah resident working as a contractor for a few months in CA? That sounds like less than a year to me. Sounds like temporary work location to me. Did he plan on making that his permanent home?
If that was indeed determined to be a temporary work location then he is allowed mileage for the trips to sell and deliver, per diem for meals and actual expenses for lodging.
H did have a job in Utah before and returned to his home where it sounds like his wife remained.

[Lion]

He was an independent contractor who chose to work in CA.

He was NOT on a temporary assignment with an employer.

Did he have a contract with that client stating an expected end-date for his project of less than a year?

[Kent]

Thank you for all of the replies.

He worked part-time, for the same employer in Utah, from July 2011 until April 2013. At that time, he quit his job and went into sales training, in Utah, with the new company. When he accepted the new position he knew it would be for the summer only and that he would be working in California. After proving that he could make sales in Utah, they sent him to California (as an independent contractor) and he returned to Utah at the end of August 2013. He was hired back by the same long-time employer in Utah with a different title than he had before.

[WhiteOleander]

His tax home is still in CA. He is not away from his tax home overnight.

[Kent]

Curious why you feel that he didn't have a Utah tax home?

[WhiteOleander]

The tax home is not automatically where the residence is. Read the TaxBook page 8-10. It gives a very good explanation on tax home and travel expenses.

[Kent]

The tax home is not automatically where the residence is. Read the TaxBook page 8-10. It gives a very good explanation on tax home and travel expenses.

I have spent considerable time reading page 8-10 through 8-13 of the TaxBook. I realize that where one lives is not necessarily one's tax home. Quoting from page 8-10, "The tax home is generally the taxpayer's regular place of business or duty post, regardless of the location of the family residence." What I am struggling with is that if one is a student working part-time (for an extended period of time) does that part-time employment make that location one's tax home?

[Kent]

The other issue I am struggling with is can one establish a tax home as an employee and travel away from one's tax home as a self-employed contractor.

[WhiteOleander]

The other issue I am struggling with is can one establish a tax home as an employee and travel away from one's tax home as a self-employed contractor.

He was no longer an employee in UT. You state that they told him to go to CA to prove himself as successful. Well, the IRS would say he had the great American Privilege to refuse to go. He did go. But, he was no away from his tax home.

We have clients that are working on oil rigs. They want to deduct away from home expenses. But, their tax home is on that rig. Not where their home is.

[Burke]

From your post, it appears there are two different employers, two different companies. First was the part-time from 2011 to 2013. Employer #1. Utah was his tax home during that time.

Then he quit. He was hired by a new company (after training) and posted in CA. That was Employer #2. I agree with DonB. It would qualify for moving expense deduction except for the fact that he did not remain in the new location long enough. When that gig was up, he moved back to Utah. And was hired back by his old employer (I assume Employer #1).

This was apparently just a temporary summer job for a student who is attending school in Utah(?). Student status really doesn't change anything. Nor part-time employment. His tax home was in CA when he was working there. Yes, he can deduct business mileage while working in that location, other than commuting. If his office was in his residence in CA, and there was no other business location there that provided him office space, then all eligible business miles (other than personal). But not food and lodging. And perhaps his moving expenses back to UT if he meets the 39-week employment test in Utah, and it is full-time work.