Is this commuting mileage?

[JohnH]

You're much more trusting than I am, especially with new clients who have "interesting" tax situations.

Do you know anything about his past preparer(s), and why he changed? I'm not asking you to post an answer to my question - consider it rhetorical. If this guy comes to me, I'm getting that question answered to my satisfaction before I do any work for him.

I've learned one thing from clients of this type - no matter how cynical I become with them, it's hard to keep up with reality.

[Burke]

Sounds like he wants to have his cake and eat it too. .... i.e, trying to take commuting mileage from San Antonio to regular port of embarkation in another state, and declare state residency in Texas (which has no income tax.) Can't have it both ways. Tax home is Texas. Mileage is non-deductible commuting.

[ChEAr$]

Tax home

Sounds like he wants to have his cake and eat it too. .... i.e, trying to take commuting mileage from San Antonio to regular port of embarkation in another state, and declare state residency in Texas (which has no income tax.) Can't have it both ways. Tax home is Texas. Mileage is non-deductible commuting.

Or isn't tax home at the port? If it is at real primary personal residence, then mileage would
be deductible. IOW, "tax home" is where you earn your bread.
And croissants, bagels, etc.

[travis bickle]

I don't think this gent

can deduct anything.

Here is a quote from Tax Topic 511
[this is the url for TT 511: http://www.irs.gov/taxtopics/tc511.html] -
/// Begin Quote:
Topic 511 - Business Travel Expenses

Travel expenses are the ordinary and necessary expenses of traveling away from home for your business, profession, or job. Generally, employees deduct these expenses using Form 2106 (PDF) or Form 2106-EZ (PDF) and on Form 1040, Schedule A (PDF). You cannot deduct expenses that are lavish or extravagant or that are for personal purposes.

You are traveling away from home if your duties require you to be away from the general area of your tax home for a period substantially longer than an ordinary day's work, and you need to get sleep or rest to meet the demands of your work while away.

Generally, your tax home is the entire city or general area where your main place of business or work is located, regardless of where you maintain your family home. For example, you live with your family in Chicago but work in Milwaukee where you stay in a hotel and eat in restaurants. You return to Chicago every weekend. You may not deduct any of your travel, meals, or lodging in Milwaukee because that is your tax home. Your travel on weekends to your family home in Chicago is not for your work, so these expenses are also not deductible. If you regularly work in more than one place, your tax home is the general area where your main place of business or work is located.
[emphasis added]
/// END Quote

So, unless there is a different definition of "tax home" someplace else, I think this gent is out of luck -- (1) he certainly does not earn any money in San Antonio where he resides; (2) the company gave him a vehicle to use for commuting [taxable benefit???]; and (3) according to the above, if he has hotel/meal expenses at his port of embarkation, well, those occur in his "tax home" and are therefore not deductible.

His employer does NOT withhold any LA state tax [he is a Texas resident]. And, even if the employer paid for hotel/meals in LA, since those occur at his "tax home", the amount of money would be taxable income since the expenses are not business expenses.

My "only" problem is -- I am out of the office for about a week-and-a-half now; cannot wait to find out what messages he left when I return.

[JohnH]

After you give him the facts, he may leave a message that says his hairstylist or mechanic has an opinoin which differs from yours, and they think they know a tax preparer who feels the same way, so he's going to talk with them and may get back to you later. Personally I'd probably prefer to hear that message on my machine in a case like this, but to each his own...

[New York Enrolled Agent]

can deduct anything.


So, unless there is a different definition of "tax home" someplace else, --

This is the definition of tax home as used by the Tax Court in Johnson 115 TC 210. (citations omitted)

We disagree with respondent's assertion that petitioner had no tax home. This Court's jurisprudence holds that an individual's tax home is generally the location of his or her principal place of employment.... If an individual does not have a principal place of employment, we generally deem the situs of the individual's permanent residence to be his or her tax home. ... We consider a person who has neither a permanent residence nor a principal place of employment to be an itinerant without a tax home. ...

[Burke]

Or isn't tax home at the port? If it is at real primary personal residence, then mileage would
be deductible. IOW, "tax home" is where you earn your bread.
And croissants, bagels, etc.

You are right, and I stand corrected. Meant to say LA, not Texas. (I hate it when I do that.)