While traveling from your home to your place of business is generally not tax deductible, there are exceptions. The three exceptions are:
Temporary Work Locations Outside the Metropolitan Area. A taxpayer (TP) may deduct daily transportation expenses between his residence and a temporary work location outside the metropolitan area where the TP lives and normally works. A “temporary work location” is when the employment is realistically expected to last a year or less and in fact does last less than a year. If it is expected to last more than a year, it does not qualify as a “temporary work location” even if the employment lasts less than a year. What constitutes a “metropolitan area” is often litigated in the courts.
Temporary Work Locations Within the Metropolitan Area. If the TP has one or more regular work locations away from his residence, the TP may deduct the cost of traveling between his residence and the other work locations.
Personal Residence is Principal Place of Business. If the TP’s residence is his principal place of business, the TP may deduct daily transportation expenses between the residence and another work location.
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