Client is a driver in the Driveaway business and had no residence during the tax year. He lived out of his personal vehicle when not driving a job. When driving a job, he would tow his personal vehicle behind the drive away vehicle (motor homes in this case). Client wants to deduct lodging and meals while driving a job. I'm not sure if this is possible since technically he was not away from home overnight. Any thoughts or advice on deducting travel and meal expenses for this situation? Thanks.
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He sounds "itinerant" to me. That makes lodging and meals non-deductible.
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Where is the main place he picks up the motor homes?
If it is IA I think you end up with that as your tax home. Unless you can show a consistent place of return to somewhere else-staying and temporary work there.
They stay in the motor home when going to the drop off. Can you still use the per diem - probably. Unless you have more activity in another area.Comment
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Tax Home
Hoosier, consider that this guy is not being straight with you. He MUST have a tax home, unless he is itinerant. If the IRS declares that he has NO tax home, then none of his travel expenses are deductible.
Tell him his status as an itinerant disallows all this expense that he wants to deduct. My guess is that he will magically declare he has a domicile somewhere.Comment
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He has to have a drivers license, no? What address is shown on it?Jiggers, EAComment
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