When can you deduct your mileage

Ten Forty Plus Quality Tax Preparation & Financial Services, Inc 281-397-7777 Fax 281-397-7443 Tax Tips When are Transportation expenses deductible? Home to regular job and job to home are never deductible. Home to Temporary Job or location are deductable if taxpayer has a main job at another location that same day. Temporary location to maid location deductible alway. Main to location to any location during the work day are deductible Getting called back to work if your on call are deductible. 2015 standard mileage rate .565 2016 Standar mileage rate .575 Most employees and self-employed taxpayers can use the summary above. Do not use this if the taxpayer’s home is the principal place of business. • Home. The place where a taxpayer resides. Transportation expenses between home and the main or regular place of work are personal commuting expenses. • Regular or main job. The principal place of business. If a taxpayer has more than one job, determine which one is the regular or main job. Consider the time spent at each, the activity at each, and the income earned at each. • Temporary work location. A place where the tax- payer’s work assignment is realistically expected to last, and does in fact last, one year or less. Unless the taxpayer has a regular place of business, only deduct transportation expenses to a temporary work location outside the metropolitan area. • Second job. If a taxpayer regularly works at two or more places in one day, whether or not for the same employer, deduct transportation expenses of getting from one work place to another. If the taxpayer does not go directly from a first job to a second job, only deduct transportation expenses of going directly from a first job to a second job. Do not deduct transportation costs between home and a second job on a day off from the main job. If you work from an office in your home, all work related mileage is deductible. It is very important that you keep a log indicating the date, the starting mileage, the ending mileage, where you went, and the purpose you were there. Substantiation for Travel, Meals, and Entertainment • Must substantiate deduction with evidence that includes: – The amount of the expense. – The time and place of the travel, entertainment, amusement, recreation, or use of the facility or property. – The business purpose of the expense. • The business relationship to the taxpayer of persons entertained, using the facility or property. • The per diem rate for meals can be used as a standard deduction in place of actual receipts. • The per diem rates for travel and meals can be used to substantiate an employer reimbursement in place of actual receipts. • An expense (other than lodging) less than $75 does not need a receipt or similar evidence to support a deduction. • Oral statements containing specific information in detail may be used to substantiate a deduction. • Electronic receipts and electronic expense reports satisfy the accountable plan substantiation rules. Please if you have any questions about mileage, don’t hesitate to call us. 1040 + Quality Tax Preparation & Financial Services Joseph C Becker www.tenfortyplus.com 281-397-7777, Fax 281-397-7443 joeb@tenfortyplus.com