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Taxact Returning User

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Taxact Returning User

Taxact returning user Index A Accidentes, Pérdidas deducibles. Taxact returning user , Pérdidas no deducibles. Taxact returning user Agencia Federal para el Manejo de Emergencias (FEMA) , cómo comunicarse con la, Cómo Comunicarse con la Agencia Federal para el Manejo de Emergencias (FEMA) Ajustes a la base, Ajuste a la base de los bienes de una sociedad anónima. Taxact returning user , Ajustes a la Base Aplazamiento de la declaración de una ganancia, Aplazamiento de la Declaración de una Ganancia Bienes de reposición adquiridos antes de presentar la declaración de impuestos, Bienes de reposición adquiridos antes de presentar la declaración de impuestos. Taxact returning user Bienes de reposición adquiridos después de haber presentado la declaración de impuestos, Bienes de reposición adquiridos después de haber presentado la declaración de impuestos. Taxact returning user Cambio de idea, Si cambia de idea. Taxact returning user Declaración enmendada, Declaración enmendada. Taxact returning user Documento escrito requerido, Documento escrito requerido. Taxact returning user Límite de 3 años, Límite de 3 años. Taxact returning user Sustitución de los bienes de reposición, Sustitución de los bienes de reposición. Taxact returning user Asistencia (see Ayuda con los impuestos) Automóviles Accidentes, Pérdidas deducibles. Taxact returning user Valor justo de mercado de, Valor de automóviles. Taxact returning user Ayuda (see Ayuda con los impuestos) Ayuda con los impuestos, Cómo Obtener Ayuda con los Impuestos B Base Ajustada, Base Ajustada Ajustes a, Ajuste a la base de los bienes de una sociedad anónima. Taxact returning user , Ajustes a la Base Propiedad de Reposición, Base de la propiedad de reposición. Taxact returning user Base ajustada, Base Ajustada Bienes de reposición, Bienes de Reposición Ajuste a la base de los bienes de una sociedad anónima, Ajuste a la base de los bienes de una sociedad anónima. Taxact returning user Aplazamiento de la declaración de una ganancia, Bienes de reposición adquiridos antes de presentar la declaración de impuestos. Taxact returning user Pago adelantado, Pago adelantado. Taxact returning user Vivienda principal Ubicada en zona de desastre, Vivienda principal en una zona de desastre. Taxact returning user Bienes de uso personal Cómo declarar pérdidas y ganancias, Bienes de uso personal. Taxact returning user Bienes extraviados o perdidos, Bienes extraviados o perdidos. Taxact returning user Bienes muebles Deducción de pérdidas, cálculo de, Bienes muebles. Taxact returning user Bienes raíces de uso personal, Excepción en el caso de bienes inmuebles de uso personal. Taxact returning user Bienes robados (see Pérdidas por robo) Bienes robados recuperados, Bienes robados recuperados. Taxact returning user C Comentarios sobre la publicación, Comentarios y sugerencias. Taxact returning user Cómo aplazar la declaración de una ganancia, Cómo Aplazar la Declaración de una Ganancia Cómo calcular una ganancia, Propiedad usada en parte para fines comerciales y en parte para fines personales. Taxact returning user Cómo calcular una pérdida, Comprobación de las pérdidas por robo. Taxact returning user Base ajustada, Base Ajustada Pérdidas en zonas de desastre, Cómo calcular la deducción de pérdidas. Taxact returning user Seguro y otros reembolsos, Seguro y Otros Reembolsos Cómo Calcular una Pérdida, Cómo Calcular la Deducción Cómo declarar pérdidas y ganancias, Declaración de una ganancia. Taxact returning user , Cómo Declarar Pérdidas y Ganancias Adquiridos antes o después de presentar la declaración de impuestos, Cuándo Declarar Pérdidas y Ganancias Base, ajustes a la, Ajustes a la Base Bienes de uso personal, Bienes de uso personal. Taxact returning user Deducciones mayores al ingreso, Si las Deducciones son Mayores que el Ingreso Depósitos monetarios, Cómo se declaran las pérdidas de depósitos monetarios. Taxact returning user Tabla 1, Tabla 1. Taxact returning user Cómo Declarar la Pérdida de Depósitos Monetarios Pérdidas en zonas de desastre, Cómo declarar la pérdida en el Formulario 1040X. Taxact returning user Propiedad comercial y de generación de ingresos, Bienes comerciales y de generación de ingresos. Taxact returning user Comprobación de las Pérdidas, Comprobación de las Pérdidas Contribuyentes casados Límites de la deducción, Contribuyentes casados. Taxact returning user , Contribuyentes casados. Taxact returning user Costos Fotografías tomadas después de la pérdida, Costos de fotografías y tasaciones. Taxact returning user Gastos imprevistos, Gastos afines. Taxact returning user Jardines, Jardines. Taxact returning user Limpieza, Costos de limpieza y reparaciones. Taxact returning user Protección, Costos de protección. Taxact returning user Reparaciones, Costos de limpieza y reparaciones. Taxact returning user Reposición, Costos de reposición. Taxact returning user Tasaciones, Costos de fotografías y tasaciones. Taxact returning user Costos de limpieza, Costos de limpieza y reparaciones. Taxact returning user Costos de protección, Costos de protección. Taxact returning user Costos de reparación, Costos de limpieza y reparaciones. Taxact returning user Costos de reposición, Costos de reposición. Taxact returning user D Declaración enmendada, Declaración enmendada. Taxact returning user Defensor del Contribuyente, El Servicio del Defensor del Contribuyente está aquí para ayudarlo a usted. Taxact returning user Desastres declarados por el gobierno federal, Propiedad comercial o de generación de ingresos ubicada en una zona de desastre declarada por el gobierno federal. Taxact returning user , Pérdidas en Zonas de Desastre Deudas incobrables, Deudas incobrables no relacionadas con los negocios. Taxact returning user Deudas incobrables no relacionadas con los negocios, Deudas incobrables no relacionadas con los negocios. Taxact returning user Documentación de la pérdida, Comprobación de las pérdidas por robo. Taxact returning user Donaciones en efectivo, Donaciones en efectivo. Taxact returning user E Entidad afín, compra de bienes de reposición de una, Compra de bienes de reposición de una entidad afín. Taxact returning user Esquemas de inversión de tipo Ponzi , Pérdidas provenientes de esquemas de inversión de tipo Ponzi (Ponzi-type schemes). Taxact returning user Expropiaciones forzosas, Expropiaciones forzosas. Taxact returning user F Fallecimiento de un contribuyente Aplazamiento de la declaración de una ganancia, Fallecimiento de un contribuyente. Taxact returning user Fines comerciales, propiedad usada en parte para, Propiedad usada en parte para fines comerciales y en parte para fines personales. Taxact returning user Fondo de emergencia del empleador en caso de desastre, Fondo de emergencia del empleador en caso de desastre. Taxact returning user Formulario 1040, Anexo A, Bienes de uso personal. Taxact returning user Formulario 1040, Anexo D, Bienes de uso personal. Taxact returning user Formulario 1040X Pérdidas en zonas de desastre, Cómo declarar la pérdida en el Formulario 1040X. Taxact returning user Formulario 4684 Cómo declarar pérdidas y ganancias en bienes de uso personal, Bienes de uso personal. Taxact returning user Fotografías Documentación de la pérdida, Costos de fotografías y tasaciones. Taxact returning user G Ganancias Aplazamiento de, Aplazamiento de la Declaración de una Ganancia, Cómo Aplazar la Declaración de una Ganancia Cómo calcular, Cómo Calcular una Ganancia Cómo declarar, Cómo Comunicarse con la Agencia Federal para el Manejo de Emergencias (FEMA) Cuándo declarar, Si cambia de idea. Taxact returning user Reembolsos, Ganancias por reembolsos. Taxact returning user Gastos afines, Gastos afines. Taxact returning user Gastos imprevistos, Gastos afines. Taxact returning user I Información adicional (see Ayuda con los impuestos) J Jardines, Jardines. Taxact returning user L Límites de la deducción, Límites de la Deducción Límites de la Deducción Regla de los $100, Regla de los $100 Regla del 10%, Regla del 10% Regla del 2%, Regla del 2% N Niños desaparecidos, fotografías de, Recordatorios P Pagos calificados para mitigación de desastres, Pagos calificados para mitigación de desastres. Taxact returning user Pagos del seguro por gastos de manutención, Pagos del seguro por gastos de manutención. Taxact returning user Paneles de Yeso (Drywall) Corrosivos, Procedimiento Especial Correspondiente a Daños Ocasionados por Paneles de Yeso (Drywall) Corrosivos Pérdida de inventario, Pérdida de inventario. Taxact returning user Pérdidas en zonas de desastre, Pérdida de inventario por desastre. Taxact returning user Pérdida de madera en pie, Pérdida de madera en pie. Taxact returning user Pérdidas Calcular la cantidad (see Cómo calcular una pérdida) Cómo declarar, Cómo Comunicarse con la Agencia Federal para el Manejo de Emergencias (FEMA) Comprobación de las, Recuperación de pérdida deducida. Taxact returning user Cuándo declarar, Si cambia de idea. Taxact returning user (Tabla 3), Tabla 3. Taxact returning user Cuándo deducir una pérdida por hecho fortuito o robo Depósitos monetarios (see Pérdidas de depósitos) Documentación de, Comprobación de las pérdidas por robo. Taxact returning user Hecho Fortuito (see Pérdidas por hecho fortuito) Robo (see Pérdidas por robo) Zonas de desastre (see Pérdidas en zonas de desastre) Pérdidas de Depósitos Declaración de (Tabla 1), Tabla 1. Taxact returning user Cómo Declarar la Pérdida de Depósitos Monetarios Pérdidas de depósitos monetarios, Bienes extraviados o perdidos. Taxact returning user , Tabla 3. Taxact returning user Cuándo deducir una pérdida por hecho fortuito o robo Cuándo declarar, Pérdidas de depósitos monetarios. Taxact returning user Pérdidas deducibles, Pérdidas deducibles. Taxact returning user Pérdidas en Zonas de Desastre Cómo calcular la deducción de pérdidas, Cómo calcular la deducción de pérdidas. Taxact returning user Cómo deducir la pérdida del año anterior, Cómo deducir la pérdida del año anterior. Taxact returning user Cuándo deducir, Cuándo deducir la pérdida. Taxact returning user Tabla 3, Tabla 3. Taxact returning user Cuándo deducir una pérdida por hecho fortuito o robo Declaración en una declaración enmendada, Declaración de pérdida por desastre en declaración de impuestos enmendada. Taxact returning user Desastre declarado por el gobierno federal, Propiedad comercial o de generación de ingresos ubicada en una zona de desastre declarada por el gobierno federal. Taxact returning user , Pérdidas en Zonas de Desastre Documentación, Documentación. Taxact returning user Formulario 1040X, Cómo declarar la pérdida en el Formulario 1040X. Taxact returning user Inventario, Pérdida de inventario por desastre. Taxact returning user Pagos calificados de asistencia en caso de desastre, Pagos calificados de asistencia en caso de desastre. Taxact returning user Pagos calificados para mitigación de desastres, Pagos calificados para mitigación de desastres. Taxact returning user Plazos Tributarios Aplazados, Zona de desastre con cobertura. Taxact returning user Préstamo federal cancelado, Préstamo federal cancelado. Taxact returning user Reglas para vivienda principal, Vivienda principal en zona de desastre. Taxact returning user , Ganancias. Taxact returning user Vivienda inhabitable, Vivienda inhabitable por desastre. Taxact returning user Pérdidas en zonas de desastre, Pérdida del inquilino. Taxact returning user Pérdidas no deducibles, Pérdidas no deducibles. Taxact returning user Pérdidas por hecho fortuito, Tabla 3. Taxact returning user Cuándo deducir una pérdida por hecho fortuito o robo Comprobación de las, Comprobación de las pérdidas por hecho fortuito. Taxact returning user Cuándo declarar, Pérdidas. Taxact returning user Definición, Hecho Fortuito Depósitos monetarios, pérdidas de, Pérdida ordinaria o por hechos fortuitos. Taxact returning user Deterioro progresivo, Deterioro progresivo. Taxact returning user Pérdidas deducibles, Pérdidas deducibles. Taxact returning user Pérdidas no deducibles, Pérdidas no deducibles. Taxact returning user Registros para el cálculo de, Registros para el cálculo de pérdidas por hecho fortuito y robo. Taxact returning user Pérdidas por robo, Robo Bienes extraviados o perdidos, Bienes extraviados o perdidos. Taxact returning user Comprobación de las, Comprobación de las pérdidas por robo. Taxact returning user Cuándo declarar, Pérdidas. Taxact returning user Cuándo Deducir una Pérdida por Hecho Fortuito (Tabla 3), Tabla 3. Taxact returning user Cuándo deducir una pérdida por hecho fortuito o robo Esquemas de inversión de tipo Ponzi , Pérdidas provenientes de esquemas de inversión de tipo Ponzi (Ponzi-type schemes). Taxact returning user Registros para el cálculo de, Registros para el cálculo de pérdidas por hecho fortuito y robo. Taxact returning user Valor justo de mercado de los bienes robados, Valor justo de mercado de los bienes robados. Taxact returning user Plazo de reposición, Plazo de Reposición Prórroga de, Prórroga. Taxact returning user Plazos Plazos Tributarios Aplazados, Plazos Tributarios Aplazados Plazos Tributarios Aplazados, Plazos Tributarios Aplazados Propiedad alquilada, Propiedad alquilada. Taxact returning user Cuándo declarar, Pérdida del inquilino. Taxact returning user Propiedad comercial o de generación de ingresos, Propiedad comercial o de generación de ingresos. Taxact returning user Propiedad de reposición Base de, Base de la propiedad de reposición. Taxact returning user Vivienda principal, Vivienda principal repuesta. Taxact returning user Publicaciones (see Ayuda con los impuestos) R Reducción de intereses, Reducción de intereses y multas. Taxact returning user Reducción de intereses y multas, Reducción de intereses y multas. Taxact returning user Reducción de multas, Reducción de intereses y multas. Taxact returning user Reembolsos Asistencia en caso de desastre, Asistencia en caso de desastre. Taxact returning user Donaciones en efectivo, Donaciones en efectivo. Taxact returning user Falta de presentación de una solicitud, Falta de presentación de una solicitud de reembolso. Taxact returning user Fondo de emergencia del empleador en caso de desastre, Fondo de emergencia del empleador en caso de desastre. Taxact returning user Recibido después de la deducción de una pérdida, Reembolso Recibido Después de la Deducción de una Pérdida Tipos de, Tipos de Reembolsos Registros para el cálculo de pérdidas por hecho fortuito y robo, Registros para el cálculo de pérdidas por hecho fortuito y robo. Taxact returning user S Seguros, Seguro y Otros Reembolsos Gastos de manutención, pagos del seguro por, Pagos del seguro por gastos de manutención. Taxact returning user Servicio del Defensor del Contribuyente, El Servicio del Defensor del Contribuyente está aquí para ayudarlo a usted. Taxact returning user Servicios gratuitos para los impuestos, Cómo Obtener Ayuda con los Impuestos Subsidios de asistencia en caso de desastre, Asistencia en caso de desastre. Taxact returning user Subsidios estales de asistencia por desastres para empresas, Subsidios estatales de asistencia por desastre para empresas. Taxact returning user Subsidios federales de asistencia en caso de desastre, Subsidios federales de asistencia en caso de desastre. Taxact returning user Sugerencias para la publicación, Comentarios y sugerencias. Taxact returning user T Tablas y figuras Cómo Declarar la Pérdida de Depósitos Monetarios (Tabla 1), Tabla 1. Taxact returning user Cómo Declarar la Pérdida de Depósitos Monetarios Cuándo Deducir una Pérdida por Hecho Fortuito (Tabla 3), Tabla 1. Taxact returning user Cómo Declarar la Pérdida de Depósitos Monetarios , Tabla 3. Taxact returning user Cuándo deducir una pérdida por hecho fortuito o robo Tasaciones, Tasaciones. Taxact returning user , Costos de fotografías y tasaciones. Taxact returning user V Valor justo de mercado Cálculo de la disminución de, Disminución del Valor Justo de Mercado Puntos a no tener en cuenta, Cómo Calcular la Disminución del Valor Justo de Mercado —Puntos a No Tener en Cuenta Puntos a tener en cuenta, Cómo Calcular la Disminución del Valor Justo de Mercado —Puntos a Tener en Cuenta Disminución del valor de mercado de la propiedad en la zona del hecho fortuito o en sus alrededores, Disminución del valor de mercado de la propiedad en la zona del hecho fortuito o en sus alrededores. Taxact returning user Valor sentimental, Valor sentimental. Taxact returning user Prev  Up     Home   More Online Publications
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Charleston, WV

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Address: Better Business Bureau
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The Taxact Returning User

Taxact returning user 1. Taxact returning user   Travel Table of Contents Traveling Away From HomeTax Home Tax Home Different From Family Home Temporary Assignment or Job What Travel Expenses Are Deductible?Employee. Taxact returning user Business associate. Taxact returning user Bona fide business purpose. Taxact returning user Meals Travel in the United States Travel Outside the United States Luxury Water Travel Conventions If you temporarily travel away from your tax home, you can use this chapter to determine if you have deductible travel expenses. Taxact returning user This chapter discusses: Traveling away from home, Temporary assignment or job, and What travel expenses are deductible. Taxact returning user It also discusses the standard meal allowance, rules for travel inside and outside the United States, luxury water travel, and deductible convention expenses. Taxact returning user Travel expenses defined. Taxact returning user   For tax purposes, travel expenses are the ordinary and necessary expenses of traveling away from home for your business, profession, or job. Taxact returning user   An ordinary expense is one that is common and accepted in your trade or business. Taxact returning user A necessary expense is one that is helpful and appropriate for your business. Taxact returning user An expense does not have to be required to be considered necessary. Taxact returning user   You will find examples of deductible travel expenses in Table 1-1 , later. Taxact returning user Traveling Away From Home You are traveling away from home if: Your duties require you to be away from the general area of your tax home (defined later) substantially longer than an ordinary day's work, and You need to sleep or rest to meet the demands of your work while away from home. Taxact returning user This rest requirement is not satisfied by merely napping in your car. Taxact returning user You do not have to be away from your tax home for a whole day or from dusk to dawn as long as your relief from duty is long enough to get necessary sleep or rest. Taxact returning user Example 1. Taxact returning user You are a railroad conductor. Taxact returning user You leave your home terminal on a regularly scheduled round-trip run between two cities and return home 16 hours later. Taxact returning user During the run, you have 6 hours off at your turnaround point where you eat two meals and rent a hotel room to get necessary sleep before starting the return trip. Taxact returning user You are considered to be away from home. Taxact returning user Example 2. Taxact returning user You are a truck driver. Taxact returning user You leave your terminal and return to it later the same day. Taxact returning user You get an hour off at your turnaround point to eat. Taxact returning user Because you are not off to get necessary sleep and the brief time off is not an adequate rest period, you are not traveling away from home. Taxact returning user Members of the Armed Forces. Taxact returning user   If you are a member of the U. Taxact returning user S. Taxact returning user Armed Forces on a permanent duty assignment overseas, you are not traveling away from home. Taxact returning user You cannot deduct your expenses for meals and lodging. Taxact returning user You cannot deduct these expenses even if you have to maintain a home in the United States for your family members who are not allowed to accompany you overseas. Taxact returning user If you are transferred from one permanent duty station to another, you may have deductible moving expenses, which are explained in Publication 521, Moving Expenses. Taxact returning user   A naval officer assigned to permanent duty aboard a ship that has regular eating and living facilities has a tax home (explained next) aboard the ship for travel expense purposes. Taxact returning user Tax Home To determine whether you are traveling away from home, you must first determine the location of your tax home. Taxact returning user Generally, your tax home is your regular place of business or post of duty, regardless of where you maintain your family home. Taxact returning user It includes the entire city or general area in which your business or work is located. Taxact returning user If you have more than one regular place of business, your tax home is your main place of business. Taxact returning user See Main place of business or work , later. Taxact returning user If you do not have a regular or a main place of business because of the nature of your work, then your tax home may be the place where you regularly live. Taxact returning user See No main place of business or work , later. Taxact returning user If you do not have a regular or main place of business or post of duty and there is no place where you regularly live, you are considered an itinerant (a transient) and your tax home is wherever you work. Taxact returning user As an itinerant, you cannot claim a travel expense deduction because you are never considered to be traveling away from home. Taxact returning user Main place of business or work. Taxact returning user   If you have more than one place of work, consider the following when determining which one is your main place of business or work. Taxact returning user The total time you ordinarily spend in each place. Taxact returning user The level of your business activity in each place. Taxact returning user Whether your income from each place is significant or insignificant. Taxact returning user Example. Taxact returning user You live in Cincinnati where you have a seasonal job for 8 months each year and earn $40,000. Taxact returning user You work the other 4 months in Miami, also at a seasonal job, and earn $15,000. Taxact returning user Cincinnati is your main place of work because you spend most of your time there and earn most of your income there. Taxact returning user No main place of business or work. Taxact returning user   You may have a tax home even if you do not have a regular or main place of work. Taxact returning user Your tax home may be the home where you regularly live. Taxact returning user Factors used to determine tax home. Taxact returning user   If you do not have a regular or main place of business or work, use the following three factors to determine where your tax home is. Taxact returning user You perform part of your business in the area of your main home and use that home for lodging while doing business in the area. Taxact returning user You have living expenses at your main home that you duplicate because your business requires you to be away from that home. Taxact returning user You have not abandoned the area in which both your historical place of lodging and your claimed main home are located; you have a member or members of your family living at your main home; or you often use that home for lodging. Taxact returning user   If you satisfy all three factors, your tax home is the home where you regularly live. Taxact returning user If you satisfy only two factors, you may have a tax home depending on all the facts and circumstances. Taxact returning user If you satisfy only one factor, you are an itinerant; your tax home is wherever you work and you cannot deduct travel expenses. Taxact returning user Example 1. Taxact returning user You are single and live in Boston in an apartment you rent. Taxact returning user You have worked for your employer in Boston for a number of years. Taxact returning user Your employer enrolls you in a 12-month executive training program. Taxact returning user You do not expect to return to work in Boston after you complete your training. Taxact returning user During your training, you do not do any work in Boston. Taxact returning user Instead, you receive classroom and on-the-job training throughout the United States. Taxact returning user You keep your apartment in Boston and return to it frequently. Taxact returning user You use your apartment to conduct your personal business. Taxact returning user You also keep up your community contacts in Boston. Taxact returning user When you complete your training, you are transferred to Los Angeles. Taxact returning user You do not satisfy factor (1) because you did not work in Boston. Taxact returning user You satisfy factor (2) because you had duplicate living expenses. Taxact returning user You also satisfy factor (3) because you did not abandon your apartment in Boston as your main home, you kept your community contacts, and you frequently returned to live in your apartment. Taxact returning user Therefore, you have a tax home in Boston. Taxact returning user Example 2. Taxact returning user You are an outside salesperson with a sales territory covering several states. Taxact returning user Your employer's main office is in Newark, but you do not conduct any business there. Taxact returning user Your work assignments are temporary, and you have no way of knowing where your future assignments will be located. Taxact returning user You have a room in your married sister's house in Dayton. Taxact returning user You stay there for one or two weekends a year, but you do no work in the area. Taxact returning user You do not pay your sister for the use of the room. Taxact returning user You do not satisfy any of the three factors listed earlier. Taxact returning user You are an itinerant and have no tax home. Taxact returning user Tax Home Different From Family Home If you (and your family) do not live at your tax home (defined earlier), you cannot deduct the cost of traveling between your tax home and your family home. Taxact returning user You also cannot deduct the cost of meals and lodging while at your tax home. Taxact returning user See Example 1 , later. Taxact returning user If you are working temporarily in the same city where you and your family live, you may be considered as traveling away from home. Taxact returning user See Example 2 , later. Taxact returning user Example 1. Taxact returning user You are a truck driver and you and your family live in Tucson. Taxact returning user You are employed by a trucking firm that has its terminal in Phoenix. Taxact returning user At the end of your long runs, you return to your home terminal in Phoenix and spend one night there before returning home. Taxact returning user You cannot deduct any expenses you have for meals and lodging in Phoenix or the cost of traveling from Phoenix to Tucson. Taxact returning user This is because Phoenix is your tax home. Taxact returning user Example 2. Taxact returning user Your family home is in Pittsburgh, where you work 12 weeks a year. Taxact returning user The rest of the year you work for the same employer in Baltimore. Taxact returning user In Baltimore, you eat in restaurants and sleep in a rooming house. Taxact returning user Your salary is the same whether you are in Pittsburgh or Baltimore. Taxact returning user Because you spend most of your working time and earn most of your salary in Baltimore, that city is your tax home. Taxact returning user You cannot deduct any expenses you have for meals and lodging there. Taxact returning user However, when you return to work in Pittsburgh, you are away from your tax home even though you stay at your family home. Taxact returning user You can deduct the cost of your round trip between Baltimore and Pittsburgh. Taxact returning user You can also deduct your part of your family's living expenses for meals and lodging while you are living and working in Pittsburgh. Taxact returning user Temporary Assignment or Job You may regularly work at your tax home and also work at another location. Taxact returning user It may not be practical to return to your tax home from this other location at the end of each work day. Taxact returning user Temporary assignment vs. Taxact returning user indefinite assignment. Taxact returning user   If your assignment or job away from your main place of work is temporary, your tax home does not change. Taxact returning user You are considered to be away from home for the whole period you are away from your main place of work. Taxact returning user You can deduct your travel expenses if they otherwise qualify for deduction. Taxact returning user Generally, a temporary assignment in a single location is one that is realistically expected to last (and does in fact last) for 1 year or less. Taxact returning user    However, if your assignment or job is indefinite, the location of the assignment or job becomes your new tax home and you cannot deduct your travel expenses while there. Taxact returning user An assignment or job in a single location is considered indefinite if it is realistically expected to last for more than 1 year, whether or not it actually lasts for more than 1 year. Taxact returning user   If your assignment is indefinite, you must include in your income any amounts you receive from your employer for living expenses, even if they are called travel allowances and you account to your employer for them. Taxact returning user You may be able to deduct the cost of relocating to your new tax home as a moving expense. Taxact returning user See Publication 521 for more information. Taxact returning user Exception for federal crime investigations or prosecutions. Taxact returning user   If you are a federal employee participating in a federal crime investigation or prosecution, you are not subject to the 1-year rule. Taxact returning user This means you may be able to deduct travel expenses even if you are away from your tax home for more than 1 year provided you meet the other requirements for deductibility. Taxact returning user   For you to qualify, the Attorney General (or his or her designee) must certify that you are traveling: For the federal government, In a temporary duty status, and To investigate, prosecute, or provide support services for the investigation or prosecution of a federal crime. Taxact returning user Determining temporary or indefinite. Taxact returning user   You must determine whether your assignment is temporary or indefinite when you start work. Taxact returning user If you expect an assignment or job to last for 1 year or less, it is temporary unless there are facts and circumstances that indicate otherwise. Taxact returning user An assignment or job that is initially temporary may become indefinite due to changed circumstances. Taxact returning user A series of assignments to the same location, all for short periods but that together cover a long period, may be considered an indefinite assignment. Taxact returning user   The following examples illustrate whether an assignment or job is temporary or indefinite. Taxact returning user Example 1. Taxact returning user You are a construction worker. Taxact returning user You live and regularly work in Los Angeles. Taxact returning user You are a member of a trade union in Los Angeles that helps you get work in the Los Angeles area. Taxact returning user Your tax home is Los Angeles. Taxact returning user Because of a shortage of work, you took a job on a construction project in Fresno. Taxact returning user Your job was scheduled to end in 8 months. Taxact returning user The job actually lasted 10 months. Taxact returning user You realistically expected the job in Fresno to last 8 months. Taxact returning user The job actually did last less than 1 year. Taxact returning user The job is temporary and your tax home is still in Los Angeles. Taxact returning user Example 2. Taxact returning user The facts are the same as in Example 1, except that you realistically expected the work in Fresno to last 18 months. Taxact returning user The job actually was completed in 10 months. Taxact returning user Your job in Fresno is indefinite because you realistically expected the work to last longer than 1 year, even though it actually lasted less than 1 year. Taxact returning user You cannot deduct any travel expenses you had in Fresno because Fresno became your tax home. Taxact returning user Example 3. Taxact returning user The facts are the same as in Example 1, except that you realistically expected the work in Fresno to last 9 months. Taxact returning user After 8 months, however, you were asked to remain for 7 more months (for a total actual stay of 15 months). Taxact returning user Initially, you realistically expected the job in Fresno to last for only 9 months. Taxact returning user However, due to changed circumstances occurring after 8 months, it was no longer realistic for you to expect that the job in Fresno would last for 1 year or less. Taxact returning user You can only deduct your travel expenses for the first 8 months. Taxact returning user You cannot deduct any travel expenses you had after that time because Fresno became your tax home when the job became indefinite. Taxact returning user Going home on days off. Taxact returning user   If you go back to your tax home from a temporary assignment on your days off, you are not considered away from home while you are in your hometown. Taxact returning user You cannot deduct the cost of your meals and lodging there. Taxact returning user However, you can deduct your travel expenses, including meals and lodging, while traveling between your temporary place of work and your tax home. Taxact returning user You can claim these expenses up to the amount it would have cost you to stay at your temporary place of work. Taxact returning user   If you keep your hotel room during your visit home, you can deduct the cost of your hotel room. Taxact returning user In addition, you can deduct your expenses of returning home up to the amount you would have spent for meals had you stayed at your temporary place of work. Taxact returning user Probationary work period. Taxact returning user   If you take a job that requires you to move, with the understanding that you will keep the job if your work is satisfactory during a probationary period, the job is indefinite. Taxact returning user You cannot deduct any of your expenses for meals and lodging during the probationary period. Taxact returning user What Travel Expenses Are Deductible? Once you have determined that you are traveling away from your tax home, you can determine what travel expenses are deductible. Taxact returning user You can deduct ordinary and necessary expenses you have when you travel away from home on business. Taxact returning user The type of expense you can deduct depends on the facts and your circumstances. Taxact returning user Table 1-1 summarizes travel expenses you may be able to deduct. Taxact returning user You may have other deductible travel expenses that are not covered there, depending on the facts and your circumstances. Taxact returning user When you travel away from home on business, you should keep records of all the expenses you have and any advances you receive from your employer. Taxact returning user You can use a log, diary, notebook, or any other written record to keep track of your expenses. Taxact returning user The types of expenses you need to record, along with supporting documentation, are described in Table 5-1 (see chapter 5). Taxact returning user Separating costs. Taxact returning user   If you have one expense that includes the costs of meals, entertainment, and other services (such as lodging or transportation), you must allocate that expense between the cost of meals and entertainment and the cost of other services. Taxact returning user You must have a reasonable basis for making this allocation. Taxact returning user For example, you must allocate your expenses if a hotel includes one or more meals in its room charge. Taxact returning user Travel expenses for another individual. Taxact returning user    If a spouse, dependent, or other individual goes with you (or your employee) on a business trip or to a business convention, you generally cannot deduct his or her travel expenses. Taxact returning user Employee. Taxact returning user   You can deduct the travel expenses of someone who goes with you if that person: Is your employee, Has a bona fide business purpose for the travel, and Would otherwise be allowed to deduct the travel expenses. Taxact returning user Business associate. Taxact returning user   If a business associate travels with you and meets the conditions in (2) and (3), earlier, you can deduct the travel expenses you have for that person. Taxact returning user A business associate is someone with whom you could reasonably expect to actively conduct business. Taxact returning user A business associate can be a current or prospective (likely to become) customer, client, supplier, employee, agent, partner, or professional advisor. Taxact returning user Bona fide business purpose. Taxact returning user   A bona fide business purpose exists if you can prove a real business purpose for the individual's presence. Taxact returning user Incidental services, such as typing notes or assisting in entertaining customers, are not enough to make the expenses deductible. Taxact returning user Table 1-1. Taxact returning user Travel Expenses You Can Deduct   This chart summarizes expenses you can deduct when you travel away from home for business purposes. Taxact returning user IF you have expenses for. Taxact returning user . Taxact returning user . Taxact returning user THEN you can deduct the cost of. Taxact returning user . Taxact returning user . Taxact returning user transportation travel by airplane, train, bus, or car between your home and your business destination. Taxact returning user If you were provided with a free ticket or you are riding free as a result of a frequent traveler or similar program, your cost is zero. Taxact returning user If you travel by ship, see Luxury Water Travel and Cruise Ships (under Conventions) for additional rules and limits. Taxact returning user taxi, commuter bus, and airport limousine fares for these and other types of transportation that take you between: The airport or station and your hotel, and The hotel and the work location of your customers or clients, your business meeting place, or your temporary work location. Taxact returning user baggage and shipping sending baggage and sample or display material between your regular and temporary work locations. Taxact returning user car operating and maintaining your car when traveling away from home on business. Taxact returning user You can deduct actual expenses or the standard mileage rate, as well as business-related tolls and parking. Taxact returning user If you rent a car while away from home on business, you can deduct only the business-use portion of the expenses. Taxact returning user lodging and meals your lodging and meals if your business trip is overnight or long enough that you need to stop for sleep or rest to properly perform your duties. Taxact returning user Meals include amounts spent for food, beverages, taxes, and related tips. Taxact returning user See Meals for additional rules and limits. Taxact returning user cleaning dry cleaning and laundry. Taxact returning user telephone business calls while on your business trip. Taxact returning user This includes business communication by fax machine or other communication devices. Taxact returning user tips tips you pay for any expenses in this chart. Taxact returning user other other similar ordinary and necessary expenses related to your business travel. Taxact returning user These expenses might include transportation to or from a business meal, public stenographer's fees, computer rental fees, and operating and maintaining a house trailer. Taxact returning user Example. Taxact returning user Jerry drives to Chicago on business and takes his wife, Linda, with him. Taxact returning user Linda is not Jerry's employee. Taxact returning user Linda occasionally types notes, performs similar services, and accompanies Jerry to luncheons and dinners. Taxact returning user The performance of these services does not establish that her presence on the trip is necessary to the conduct of Jerry's business. Taxact returning user Her expenses are not deductible. Taxact returning user Jerry pays $199 a day for a double room. Taxact returning user A single room costs $149 a day. Taxact returning user He can deduct the total cost of driving his car to and from Chicago, but only $149 a day for his hotel room. Taxact returning user If he uses public transportation, he can deduct only his fare. Taxact returning user Meals You can deduct the cost of meals in either of the following situations. Taxact returning user It is necessary for you to stop for substantial sleep or rest to properly perform your duties while traveling away from home on business. Taxact returning user The meal is business-related entertainment. Taxact returning user Business-related entertainment is discussed in chapter 2 . Taxact returning user The following discussion deals only with meals that are not business-related entertainment. Taxact returning user Lavish or extravagant. Taxact returning user   You cannot deduct expenses for meals that are lavish or extravagant. Taxact returning user An expense is not considered lavish or extravagant if it is reasonable based on the facts and circumstances. Taxact returning user Expenses will not be disallowed merely because they are more than a fixed dollar amount or take place at deluxe restaurants, hotels, nightclubs, or resorts. Taxact returning user 50% limit on meals. Taxact returning user   You can figure your meals expense using either of the following methods. Taxact returning user Actual cost. Taxact returning user The standard meal allowance. Taxact returning user Both of these methods are explained below. Taxact returning user But, regardless of the method you use, you generally can deduct only 50% of the unreimbursed cost of your meals. Taxact returning user   If you are reimbursed for the cost of your meals, how you apply the 50% limit depends on whether your employer's reimbursement plan was accountable or nonaccountable. Taxact returning user If you are not reimbursed, the 50% limit applies whether the unreimbursed meal expense is for business travel or business entertainment. Taxact returning user Chapter 2 discusses the 50% Limit in more detail, and chapter 6 discusses accountable and nonaccountable plans. Taxact returning user Actual Cost You can use the actual cost of your meals to figure the amount of your expense before reimbursement and application of the 50% deduction limit. Taxact returning user If you use this method, you must keep records of your actual cost. Taxact returning user Standard Meal Allowance Generally, you can use the “standard meal allowance” method as an alternative to the actual cost method. Taxact returning user It allows you to use a set amount for your daily meals and incidental expenses (M&IE), instead of keeping records of your actual costs. Taxact returning user The set amount varies depending on where and when you travel. Taxact returning user In this publication, “standard meal allowance” refers to the federal rate for M&IE, discussed later under Amount of standard meal allowance . Taxact returning user If you use the standard meal allowance, you still must keep records to prove the time, place, and business purpose of your travel. Taxact returning user See the recordkeeping rules for travel in chapter 5 . Taxact returning user Incidental expenses. Taxact returning user   The term “incidental expenses” means fees and tips given to porters, baggage carriers, hotel staff, and staff on ships. Taxact returning user   Incidental expenses do not include expenses for laundry, cleaning and pressing of clothing, lodging taxes, costs of telegrams or telephone calls, transportation between places of lodging or business and places where meals are taken, or the mailing cost of filing travel vouchers and paying employer-sponsored charge card billings. Taxact returning user Incidental-expenses-only method. Taxact returning user   You can use an optional method (instead of actual cost) for deducting incidental expenses only. Taxact returning user The amount of the deduction is $5 a day. Taxact returning user You can use this method only if you did not pay or incur any meal expenses. Taxact returning user You cannot use this method on any day that you use the standard meal allowance. Taxact returning user This method is subject to the proration rules for partial days. Taxact returning user See Travel for days you depart and return , later in this chapter. Taxact returning user Note. Taxact returning user The incidental-expenses-only method is not subject to the 50% limit discussed below. Taxact returning user Federal employees should refer to the Federal Travel Regulations at www. Taxact returning user gsa. Taxact returning user gov. Taxact returning user Find the “Most Requested Links” on the upper left and click on “Regulations: FAR, FMR, FTR” for Federal Travel Regulation (FTR) for changes affecting claims for reimbursement. Taxact returning user 50% limit may apply. Taxact returning user   If you use the standard meal allowance method for meal expenses and you are not reimbursed or you are reimbursed under a nonaccountable plan, you can generally deduct only 50% of the standard meal allowance. Taxact returning user If you are reimbursed under an accountable plan and you are deducting amounts that are more than your reimbursements, you can deduct only 50% of the excess amount. Taxact returning user The 50% limit is discussed in more detail in chapter 2, and accountable and nonaccountable plans are discussed in chapter 6. Taxact returning user There is no optional standard lodging amount similar to the standard meal allowance. Taxact returning user Your allowable lodging expense deduction is your actual cost. Taxact returning user Who can use the standard meal allowance. Taxact returning user   You can use the standard meal allowance whether you are an employee or self-employed, and whether or not you are reimbursed for your traveling expenses. Taxact returning user Use of the standard meal allowance for other travel. Taxact returning user   You can use the standard meal allowance to figure your meal expenses when you travel in connection with investment and other income-producing property. Taxact returning user You can also use it to figure your meal expenses when you travel for qualifying educational purposes. Taxact returning user You cannot use the standard meal allowance to figure the cost of your meals when you travel for medical or charitable purposes. Taxact returning user Amount of standard meal allowance. Taxact returning user   The standard meal allowance is the federal M&IE rate. Taxact returning user For travel in 2013, the rate for most small localities in the United States is $46 a day. Taxact returning user    Most major cities and many other localities in the United States are designated as high-cost areas, qualifying for higher standard meal allowances. Taxact returning user    You can find this information (organized by state) on the Internet at www. Taxact returning user gsa. Taxact returning user gov/perdiem. Taxact returning user Enter a zip code or select a city and state for the per diem rates for the current fiscal year. Taxact returning user Per diem rates for prior fiscal years are available by using the drop down menu under “Search by State. Taxact returning user ”   Per diem rates are listed by the Federal government's fiscal year which runs from October 1 to September 30. Taxact returning user You can choose to use the rates from the 2013 fiscal year per diem tables or the rates from the 2014 fiscal year tables, but you must consistently use the same tables for all travel you are reporting on your income tax return for the year. Taxact returning user   If you travel to more than one location in one day, use the rate in effect for the area where you stop for sleep or rest. Taxact returning user If you work in the transportation industry, however, see Special rate for transportation workers , later. Taxact returning user Standard meal allowance for areas outside the continental United States. Taxact returning user   The standard meal allowance rates above do not apply to travel in Alaska, Hawaii, or any other location outside the continental United States. Taxact returning user The Department of Defense establishes per diem rates for Alaska, Hawaii, Puerto Rico, American Samoa, Guam, Midway, the Northern Mariana Islands, the U. Taxact returning user S. Taxact returning user Virgin Islands, Wake Island, and other non-foreign areas outside the continental United States. Taxact returning user The Department of State establishes per diem rates for all other foreign areas. Taxact returning user    You can access per diem rates for non-foreign areas outside the continental United States at: www. Taxact returning user defensetravel. Taxact returning user dod. Taxact returning user mil/site/perdiemCalc. Taxact returning user cfm. Taxact returning user You can access all other foreign per diem rates at: www. Taxact returning user state. Taxact returning user gov/travel/. Taxact returning user Click on “Travel Per Diem Allowances for Foreign Areas,” under “Foreign Per Diem Rates” to obtain the latest foreign per diem rates. Taxact returning user Special rate for transportation workers. Taxact returning user   You can use a special standard meal allowance if you work in the transportation industry. Taxact returning user You are in the transportation industry if your work: Directly involves moving people or goods by airplane, barge, bus, ship, train, or truck, and Regularly requires you to travel away from home and, during any single trip, usually involves travel to areas eligible for different standard meal allowance rates. Taxact returning user If this applies to you, you can claim a standard meal allowance of $59 a day ($65 for travel outside the continental United States). Taxact returning user   Using the special rate for transportation workers eliminates the need for you to determine the standard meal allowance for every area where you stop for sleep or rest. Taxact returning user If you choose to use the special rate for any trip, you must use the special rate (and not use the regular standard meal allowance rates) for all trips you take that year. Taxact returning user Travel for days you depart and return. Taxact returning user   For both the day you depart for and the day you return from a business trip, you must prorate the standard meal allowance (figure a reduced amount for each day). Taxact returning user You can do so by one of two methods. Taxact returning user Method 1: You can claim 3/4 of the standard meal allowance. Taxact returning user Method 2: You can prorate using any method that you consistently apply and that is in accordance with reasonable business practice. Taxact returning user Example. Taxact returning user Jen is employed in New Orleans as a convention planner. Taxact returning user In March, her employer sent her on a 3-day trip to Washington, DC, to attend a planning seminar. Taxact returning user She left her home in New Orleans at 10 a. Taxact returning user m. Taxact returning user on Wednesday and arrived in Washington, DC, at 5:30 p. Taxact returning user m. Taxact returning user After spending two nights there, she flew back to New Orleans on Friday and arrived back home at 8:00 p. Taxact returning user m. Taxact returning user Jen's employer gave her a flat amount to cover her expenses and included it with her wages. Taxact returning user Under Method 1, Jen can claim 2½ days of the standard meal allowance for Washington, DC: 3/4 of the daily rate for Wednesday and Friday (the days she departed and returned), and the full daily rate for Thursday. Taxact returning user Under Method 2, Jen could also use any method that she applies consistently and that is in accordance with reasonable business practice. Taxact returning user For example, she could claim 3 days of the standard meal allowance even though a federal employee would have to use Method 1 and be limited to only 2½ days. Taxact returning user Travel in the United States The following discussion applies to travel in the United States. Taxact returning user For this purpose, the United States includes the 50 states and the District of Columbia. Taxact returning user The treatment of your travel expenses depends on how much of your trip was business related and on how much of your trip occurred within the United States. Taxact returning user See Part of Trip Outside the United States , later. Taxact returning user Trip Primarily for Business You can deduct all of your travel expenses if your trip was entirely business related. Taxact returning user If your trip was primarily for business and, while at your business destination, you extended your stay for a vacation, made a personal side trip, or had other personal activities, you can deduct only your business-related travel expenses. Taxact returning user These expenses include the travel costs of getting to and from your business destination and any business-related expenses at your business destination. Taxact returning user Example. Taxact returning user You work in Atlanta and take a business trip to New Orleans in May. Taxact returning user Your business travel totals 850 miles round trip. Taxact returning user On your way, you stop in Mobile to visit your parents. Taxact returning user You spend $2,120 for the 9 days you are away from home for travel, meals, lodging, and other travel expenses. Taxact returning user If you had not stopped in Mobile, you would have been gone only 6 days, and your total cost would have been $1,820. Taxact returning user You can deduct $1,820 for your trip, including the cost of round-trip transportation to and from New Orleans. Taxact returning user The deduction for your meals is subject to the 50% limit on meals mentioned earlier. Taxact returning user Trip Primarily for Personal Reasons If your trip was primarily for personal reasons, such as a vacation, the entire cost of the trip is a nondeductible personal expense. Taxact returning user However, you can deduct any expenses you have while at your destination that are directly related to your business. Taxact returning user A trip to a resort or on a cruise ship may be a vacation even if the promoter advertises that it is primarily for business. Taxact returning user The scheduling of incidental business activities during a trip, such as viewing videotapes or attending lectures dealing with general subjects, will not change what is really a vacation into a business trip. Taxact returning user Part of Trip Outside the United States If part of your trip is outside the United States, use the rules described later in this chapter under Travel Outside the United States for that part of the trip. Taxact returning user For the part of your trip that is inside the United States, use the rules for travel in the United States. Taxact returning user Travel outside the United States does not include travel from one point in the United States to another point in the United States. Taxact returning user The following discussion can help you determine whether your trip was entirely within the United States. Taxact returning user Public transportation. Taxact returning user   If you travel by public transportation, any place in the United States where that vehicle makes a scheduled stop is a point in the United States. Taxact returning user Once the vehicle leaves the last scheduled stop in the United States on its way to a point outside the United States, you apply the rules under Travel Outside the United States . Taxact returning user Example. Taxact returning user You fly from New York to Puerto Rico with a scheduled stop in Miami. Taxact returning user You return to New York nonstop. Taxact returning user The flight from New York to Miami is in the United States, so only the flight from Miami to Puerto Rico is outside the United States. Taxact returning user Because there are no scheduled stops between Puerto Rico and New York, all of the return trip is outside the United States. Taxact returning user Private car. Taxact returning user   Travel by private car in the United States is travel between points in the United States, even though you are on your way to a destination outside the United States. Taxact returning user Example. Taxact returning user You travel by car from Denver to Mexico City and return. Taxact returning user Your travel from Denver to the border and from the border back to Denver is travel in the United States, and the rules in this section apply. Taxact returning user The rules under Travel Outside the United States apply to your trip from the border to Mexico City and back to the border. Taxact returning user Travel Outside the United States If any part of your business travel is outside the United States, some of your deductions for the cost of getting to and from your destination may be limited. Taxact returning user For this purpose, the United States includes the 50 states and the District of Columbia. Taxact returning user How much of your travel expenses you can deduct depends in part upon how much of your trip outside the United States was business related. Taxact returning user Travel Entirely for Business or Considered Entirely for Business You can deduct all your travel expenses of getting to and from your business destination if your trip is entirely for business or considered entirely for business. Taxact returning user Travel entirely for business. Taxact returning user   If you travel outside the United States and you spend the entire time on business activities, you can deduct all of your travel expenses. Taxact returning user Travel considered entirely for business. Taxact returning user   Even if you did not spend your entire time on business activities, your trip is considered entirely for business if you meet at least one of the following four exceptions. Taxact returning user Exception 1 - No substantial control. Taxact returning user   Your trip is considered entirely for business if you did not have substantial control over arranging the trip. Taxact returning user The fact that you control the timing of your trip does not, by itself, mean that you have substantial control over arranging your trip. Taxact returning user   You do not have substantial control over your trip if you: Are an employee who was reimbursed or paid a travel expense allowance, and Are not related to your employer, or Are not a managing executive. Taxact returning user    “Related to your employer” is defined later in chapter 6 under Per Diem and Car Allowances . Taxact returning user   A “managing executive” is an employee who has the authority and responsibility, without being subject to the veto of another, to decide on the need for the business travel. Taxact returning user   A self-employed person generally has substantial control over arranging business trips. Taxact returning user Exception 2 - Outside United States no more than a week. Taxact returning user   Your trip is considered entirely for business if you were outside the United States for a week or less, combining business and nonbusiness activities. Taxact returning user One week means 7 consecutive days. Taxact returning user In counting the days, do not count the day you leave the United States, but do count the day you return to the United States. Taxact returning user Example. Taxact returning user You traveled to Brussels primarily for business. Taxact returning user You left Denver on Tuesday and flew to New York. Taxact returning user On Wednesday, you flew from New York to Brussels, arriving the next morning. Taxact returning user On Thursday and Friday, you had business discussions, and from Saturday until Tuesday, you were sightseeing. Taxact returning user You flew back to New York, arriving Wednesday afternoon. Taxact returning user On Thursday, you flew back to Denver. Taxact returning user Although you were away from your home in Denver for more than a week, you were not outside the United States for more than a week. Taxact returning user This is because the day you depart does not count as a day outside the United States. Taxact returning user You can deduct your cost of the round-trip flight between Denver and Brussels. Taxact returning user You can also deduct the cost of your stay in Brussels for Thursday and Friday while you conducted business. Taxact returning user However, you cannot deduct the cost of your stay in Brussels from Saturday through Tuesday because those days were spent on nonbusiness activities. Taxact returning user Exception 3 - Less than 25% of time on personal activities. Taxact returning user   Your trip is considered entirely for business if: You were outside the United States for more than a week, and You spent less than 25% of the total time you were outside the United States on nonbusiness activities. Taxact returning user For this purpose, count both the day your trip began and the day it ended. Taxact returning user Example. Taxact returning user You flew from Seattle to Tokyo, where you spent 14 days on business and 5 days on personal matters. Taxact returning user You then flew back to Seattle. Taxact returning user You spent 1 day flying in each direction. Taxact returning user Because only 5/21 (less than 25%) of your total time abroad was for nonbusiness activities, you can deduct as travel expenses what it would have cost you to make the trip if you had not engaged in any nonbusiness activity. Taxact returning user The amount you can deduct is the cost of the round-trip plane fare and 16 days of meals (subject to the 50% limit), lodging, and other related expenses. Taxact returning user Exception 4 - Vacation not a major consideration. Taxact returning user   Your trip is considered entirely for business if you can establish that a personal vacation was not a major consideration, even if you have substantial control over arranging the trip. Taxact returning user Travel Primarily for Business If you travel outside the United States primarily for business but spend some of your time on other activities, you generally cannot deduct all of your travel expenses. Taxact returning user You can only deduct the business portion of your cost of getting to and from your destination. Taxact returning user You must allocate the costs between your business and other activities to determine your deductible amount. Taxact returning user See Travel allocation rules , later. Taxact returning user You do not have to allocate your travel expenses if you meet one of the four exceptions listed earlier under Travel considered entirely for business . Taxact returning user In those cases, you can deduct the total cost of getting to and from your destination. Taxact returning user Travel allocation rules. Taxact returning user   If your trip outside the United States was primarily for business, you must allocate your travel time on a day-to-day basis between business days and nonbusiness days. Taxact returning user The days you depart from and return to the United States are both counted as days outside the United States. Taxact returning user   To figure the deductible amount of your round-trip travel expenses, use the following fraction. Taxact returning user The numerator (top number) is the total number of business days outside the United States. Taxact returning user The denominator (bottom number) is the total number of business and nonbusiness days of travel. Taxact returning user Counting business days. Taxact returning user   Your business days include transportation days, days your presence was required, days you spent on business, and certain weekends and holidays. Taxact returning user Transportation day. Taxact returning user   Count as a business day any day you spend traveling to or from a business destination. Taxact returning user However, if because of a nonbusiness activity you do not travel by a direct route, your business days are the days it would take you to travel a reasonably direct route to your business destination. Taxact returning user Extra days for side trips or nonbusiness activities cannot be counted as business days. Taxact returning user Presence required. Taxact returning user   Count as a business day any day your presence is required at a particular place for a specific business purpose. Taxact returning user Count it as a business day even if you spend most of the day on nonbusiness activities. Taxact returning user Day spent on business. Taxact returning user   If your principal activity during working hours is the pursuit of your trade or business, count the day as a business day. Taxact returning user Also, count as a business day any day you are prevented from working because of circumstances beyond your control. Taxact returning user Certain weekends and holidays. Taxact returning user   Count weekends, holidays, and other necessary standby days as business days if they fall between business days. Taxact returning user But if they follow your business meetings or activity and you remain at your business destination for nonbusiness or personal reasons, do not count them as business days. Taxact returning user Example 1. Taxact returning user Your tax home is New York City. Taxact returning user You travel to Quebec, where you have a business appointment on Friday. Taxact returning user You have another appointment on the following Monday. Taxact returning user Because your presence was required on both Friday and Monday, they are business days. Taxact returning user Because the weekend is between business days, Saturday and Sunday are counted as business days. Taxact returning user This is true even though you use the weekend for sightseeing, visiting friends, or other nonbusiness activity. Taxact returning user Example 2. Taxact returning user If, in Example 1, you had no business in Quebec after Friday, but stayed until Monday before starting home, Saturday and Sunday would be nonbusiness days. Taxact returning user Nonbusiness activity on the way to or from your business destination. Taxact returning user   If you stopped for a vacation or other nonbusiness activity either on the way from the United States to your business destination, or on the way back to the United States from your business destination, you must allocate part of your travel expenses to the nonbusiness activity. Taxact returning user   The part you must allocate is the amount it would have cost you to travel between the point where travel outside the United States begins and your nonbusiness destination and a return to the point where travel outside the United States ends. Taxact returning user   You determine the nonbusiness portion of that expense by multiplying it by a fraction. Taxact returning user The numerator (top number) of the fraction is the number of nonbusiness days during your travel outside the United States and the denominator (bottom number) is the total number of days you spend outside the United States. Taxact returning user Example. Taxact returning user You live in New York. Taxact returning user On May 4 you flew to Paris to attend a business conference that began on May 5. Taxact returning user The conference ended at noon on May 14. Taxact returning user That evening you flew to Dublin where you visited with friends until the afternoon of May 21, when you flew directly home to New York. Taxact returning user The primary purpose for the trip was to attend the conference. Taxact returning user If you had not stopped in Dublin, you would have arrived home the evening of May 14. Taxact returning user You do not meet any of the exceptions that would allow you to consider your travel entirely for business. Taxact returning user May 4 through May 14 (11 days) are business days and May 15 through May 21 (7 days) are nonbusiness days. Taxact returning user You can deduct the cost of your meals (subject to the 50% limit), lodging, and other business-related travel expenses while in Paris. Taxact returning user You cannot deduct your expenses while in Dublin. Taxact returning user You also cannot deduct 7/18 of what it would have cost you to travel round-trip between New York and Dublin. Taxact returning user You paid $750 to fly from New York to Paris, $400 to fly from Paris to Dublin, and $700 to fly from Dublin back to New York. Taxact returning user Round-trip airfare from New York to Dublin would have been $1,250. Taxact returning user You figure the deductible part of your air travel expenses by subtracting 7/18 of the round-trip fare and other expenses you would have had in traveling directly between New York and Dublin ($1,250 × 7/18 = $486) from your total expenses in traveling from New York to Paris to Dublin and back to New York ($750 + $400 + $700 = $1,850). Taxact returning user Your deductible air travel expense is $1,364 ($1,850 − $486). Taxact returning user Nonbusiness activity at, near, or beyond business destination. Taxact returning user   If you had a vacation or other nonbusiness activity at, near, or beyond your business destination, you must allocate part of your travel expenses to the nonbusiness activity. Taxact returning user   The part you must allocate is the amount it would have cost you to travel between the point where travel outside the United States begins and your business destination and a return to the point where travel outside the United States ends. Taxact returning user   You determine the nonbusiness portion of that expense by multiplying it by a fraction. Taxact returning user The numerator (top number) of the fraction is the number of nonbusiness days during your travel outside the United States and the denominator (bottom number) is the total number of days you spend outside the United States. Taxact returning user   None of your travel expenses for nonbusiness activities at, near, or beyond your business destination are deductible. Taxact returning user Example. Taxact returning user Assume that the dates are the same as in the previous example but that instead of going to Dublin for your vacation, you fly to Venice, Italy, for a vacation. Taxact returning user You cannot deduct any part of the cost of your trip from Paris to Venice and return to Paris. Taxact returning user In addition, you cannot deduct 7/18 of the airfare and other expenses from New York to Paris and back to New York. Taxact returning user You can deduct 11/18 of the round-trip plane fare and other travel expenses from New York to Paris, plus your meals (subject to the 50% limit), lodging, and any other business expenses you had in Paris. Taxact returning user (Assume these expenses total $4,939. Taxact returning user ) If the round-trip plane fare and other travel-related expenses (such as food during the trip) are $1,750, you can deduct travel costs of $1,069 (11/18 × $1,750), plus the full $4,939 for the expenses you had in Paris. Taxact returning user Other methods. Taxact returning user   You can use another method of counting business days if you establish that it more clearly reflects the time spent on other than business activities outside the United States. Taxact returning user Travel Primarily for Personal Reasons If you travel outside the United States primarily for vacation or for investment purposes, the entire cost of the trip is a nondeductible personal expense. Taxact returning user However, if you spend some time attending brief professional seminars or a continuing education program, you can deduct your registration fees and other expenses you have that are directly related to your business. Taxact returning user Example. Taxact returning user The university from which you graduated has a continuing education program for members of its alumni association. Taxact returning user This program consists of trips to various foreign countries where academic exercises and conferences are set up to acquaint individuals in most occupations with selected facilities in several regions of the world. Taxact returning user However, none of the conferences are directed toward specific occupations or professions. Taxact returning user It is up to each participant to seek out specialists and organizational settings appropriate to his or her occupational interests. Taxact returning user Three-hour sessions are held each day over a 5-day period at each of the selected overseas facilities where participants can meet with individual practitioners. Taxact returning user These sessions are composed of a variety of activities including workshops, mini-lectures, role playing, skill development, and exercises. Taxact returning user Professional conference directors schedule and conduct the sessions. Taxact returning user Participants can choose those sessions they wish to attend. Taxact returning user You can participate in this program since you are a member of the alumni association. Taxact returning user You and your family take one of the trips. Taxact returning user You spend about 2 hours at each of the planned sessions. Taxact returning user The rest of the time you go touring and sightseeing with your family. Taxact returning user The trip lasts less than 1 week. Taxact returning user Your travel expenses for the trip are not deductible since the trip was primarily a vacation. Taxact returning user However, registration fees and any other incidental expenses you have for the five planned sessions you attended that are directly related and beneficial to your business are deductible business expenses. Taxact returning user These expenses should be specifically stated in your records to ensure proper allocation of your deductible business expenses. Taxact returning user Luxury Water Travel If you travel by ocean liner, cruise ship, or other form of luxury water transportation for business purposes, there is a daily limit on the amount you can deduct. Taxact returning user The limit is twice the highest federal per diem rate allowable at the time of your travel. Taxact returning user (Generally, the federal per diem is the amount paid to federal government employees for daily living expenses when they travel away from home, but in the United States, for business purposes. Taxact returning user ) Daily limit on luxury water travel. Taxact returning user   The highest federal per diem rate allowed and the daily limit for luxury water travel in 2013 is shown in the following table. Taxact returning user   2013 Dates Highest Federal Per Diem Daily Limit on Luxury Water Travel   Jan. Taxact returning user 1 – Mar. Taxact returning user 31 $367 $734   Apr. Taxact returning user 1 – June 30 312 624   July 1 – Aug. Taxact returning user 31 310 620   Sept. Taxact returning user 1 – Sept. Taxact returning user 30 366 732   Oct. Taxact returning user 1 – Dec. Taxact returning user 31 374 748 Example. Taxact returning user Caroline, a travel agent, traveled by ocean liner from New York to London, England, on business in May. Taxact returning user Her expense for the 6-day cruise was $5,200. Taxact returning user Caroline's deduction for the cruise cannot exceed $3,744 (6 days × $624 daily limit). Taxact returning user Meals and entertainment. Taxact returning user   If your expenses for luxury water travel include separately stated amounts for meals or entertainment, those amounts are subject to the 50% limit on meals and entertainment before you apply the daily limit. Taxact returning user For a discussion of the 50% Limit , see chapter 2. Taxact returning user Example. Taxact returning user In the previous example, Caroline's luxury water travel had a total cost of $5,200. Taxact returning user Of that amount, $3,700 was separately stated as meals and entertainment. Taxact returning user Caroline, who is self-employed, is not reimbursed for any of her travel expenses. Taxact returning user Caroline figures her deductible travel expenses as follows. Taxact returning user Meals and entertainment $3,700   50% limit × . Taxact returning user 50   Allowable meals &     entertainment $1,850   Other travel expenses + 1,800   Allowable cost before the daily limit $3,650 Daily limit for May 2013 $624   Times number of days × 6   Maximum luxury water travel     deduction $3,744 Amount of allowable deduction $3,650 Caroline's deduction for her cruise is limited to $3,650, even though the limit on luxury water travel is slightly higher. Taxact returning user Not separately stated. Taxact returning user   If your meal or entertainment charges are not separately stated or are not clearly identifiable, you do not have to allocate any portion of the total charge to meals or entertainment. Taxact returning user Exceptions The daily limit on luxury water travel (discussed earlier) does not apply to expenses you have to attend a convention, seminar, or meeting on board a cruise ship. Taxact returning user See Cruise Ships under Conventions. Taxact returning user Conventions You can deduct your travel expenses when you attend a convention if you can show that your attendance benefits your trade or business. Taxact returning user You cannot deduct the travel expenses for your family. Taxact returning user If the convention is for investment, political, social, or other purposes unrelated to your trade or business, you cannot deduct the expenses. Taxact returning user Your appointment or election as a delegate does not, in itself, determine whether you can deduct travel expenses. Taxact returning user You can deduct your travel expenses only if your attendance is connected to your own trade or business. Taxact returning user Convention agenda. Taxact returning user   The convention agenda or program generally shows the purpose of the convention. Taxact returning user You can show your attendance at the convention benefits your trade or business by comparing the agenda with the official duties and responsibilities of your position. Taxact returning user The agenda does not have to deal specifically with your official duties and responsibilities; it will be enough if the agenda is so related to your position that it shows your attendance was for business purposes. Taxact returning user Conventions Held Outside the North American Area You cannot deduct expenses for attending a convention, seminar, or similar meeting held outside the North American area unless: The meeting is directly related to your trade or business, and It is reasonable to hold the meeting outside the North American area. Taxact returning user See Reasonableness test , later. Taxact returning user If the meeting meets these requirements, you also must satisfy the rules for deducting expenses for business trips in general, discussed earlier under Travel Outside the United States . Taxact returning user North American area. Taxact returning user   The North American area includes the following locations. Taxact returning user American Samoa Johnston Island Antigua and Barbuda Kingman Reef Aruba Marshall Islands Bahamas Mexico Baker Island Micronesia Barbados Midway Islands Bermuda Netherlands Antilles Canada Northern Mariana Costa Rica Islands Dominica Palau Dominican Republic Palmyra Atoll Grenada Panama Guam Puerto Rico Guyana Trinidad and Tobago Honduras USA Howland Island U. Taxact returning user S. Taxact returning user Virgin Islands Jamaica Wake Island Jarvis Island   The North American area also includes U. Taxact returning user S. Taxact returning user islands, cays, and reefs that are possessions of the United States and not part of the fifty states or the District of Columbia. Taxact returning user Reasonableness test. Taxact returning user   The following factors are taken into account to determine if it was reasonable to hold the meeting outside the North American area. Taxact returning user The purpose of the meeting and the activities taking place at the meeting. Taxact returning user The purposes and activities of the sponsoring organizations or groups. Taxact returning user The homes of the active members of the sponsoring organizations and the places at which other meetings of the sponsoring organizations or groups have been or will be held. Taxact returning user Other relevant factors you may present. Taxact returning user Cruise Ships You can deduct up to $2,000 per year of your expenses of attending conventions, seminars, or similar meetings held on cruise ships. Taxact returning user All ships that sail are considered cruise ships. Taxact returning user You can deduct these expenses only if all of the following requirements are met. Taxact returning user The convention, seminar, or meeting is directly related to your trade or business. Taxact returning user The cruise ship is a vessel registered in the United States. Taxact returning user All of the cruise ship's ports of call are in the United States or in possessions of the United States. Taxact returning user You attach to your return a written statement signed by you that includes information about: The total days of the trip (not including the days of transportation to and from the cruise ship port), The number of hours each day that you devoted to scheduled business activities, and A program of the scheduled business activities of the meeting. Taxact returning user You attach to your return a written statement signed by an officer of the organization or group sponsoring the meeting that includes: A schedule of the business activities of each day of the meeting, and The number of hours you attended the scheduled business activities. Taxact returning user Prev  Up  Next   Home   More Online Publications