- quote -

Yes: The presumption that 4-12 weeks isn't anywhere near 1
year and is therefore deemed temporary, not indefinite.

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John H. Fisher <taxservice[at]aol.compliance> wrote:

- quote -

If there's an upper bound of under a year (in this case,
about three months), is the assignment still "indefinite"
(because the exact duration is unknown)? I wouldn't think
so.

Seth

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- quote -

Jack, perhaps I am missing something. Rather than an
indefinite period of assignment, I was basing my opinion on
the "4 to 12 week" period of assignment referred to by the
OP and repeated in the first paragraph above.

Timothy E. Kelly, Esq.
Certified Specialist, Taxation Law
State Bar of California
Board of Legal Specialization

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- quote -

Thanks very much, Timothy. That confirms my interpretation
of the issue.

That said, if any of you have another view, I'd certainly
like to hear it. As much as I want the deduction, I also
want to do it right.

Dana

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- quote -

Tim, it would appear, in this case, that the contributor's
assignments involve an "indefinite" period which would make
the transport a non-deductible commuting expense. Am I
missing something???

"Jack" - John H. Fisher - TaxService[at]aol.com
Philadelphia, Pa - Atlantic City, NJ - West Wildwood, NJ
My Newsgroups & Boards at: http://members.aol.com/TaxService/index.html

Where Ignorance is bliss, 'tis folly to be wise!=

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- quote -

Sounds GREAT to me, Harry B!!!= However, in the case of
this particular contributor, wouldn't the "indefinite"
nature of the assignments make it a non-deductible commuting
expense??

"Jack" - John H. Fisher - TaxService[at]aol.com
Philadelphia, Pa - Atlantic City, NJ - West Wildwood, NJ
My Newsgroups & Boards at: http://members.aol.com/TaxService/index.html

Where Ignorance is bliss, 'tis folly to be wise!=

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- quote -

I disagree with the "first job of the day" opinion. In fact,
it appears all of your mileage to these temporary sites may
qualify as business miles. In Revenue Ruling 99-7, paragraph
[12](2)the IRS held, "If a taxpayer has one or more regular
work locations away from the taxpayer's residence, the
taxpayer may deduct daily transportation expenses incurred
in going between the taxpayer's residence and a TEMPORARY
work location in the same trade or business, regardless of
the distance."

Under paragraph [13] of the same Revenue Ruling, the IRS
addresses what is a temporary work location, "If employment
at a work location is realistically expected to last (and
does in fact last) for 1 year or less, the employment is
temporary in the absence of facts and circumstances
indicating otherwise."

Note that if you make a circuit of the very same temporary
locations on a frequent basis, the IRS will not consider
these to be temporary locations but rather "regular" work
locations. The Service will not allow mileage from your
residence to be deducted under these circumstances.

In Chief Counsel Advice 200026025, the IRS opined that,
while the facts and circumstances test does apply in
analyzing a case like yours, generally a break in service at
a temporary location exceeding seven months is enough to
"reset" the clock for purposes of applying Revenue Ruling
99-7.

In order to have a temporary work location, you must have a
permanent work location. Your office where you spend 30% of
your time would appear to qualify for this. But any
deduction you are entitled to must be reduced by
reimbursement from your employer.

Timothy E. Kelly, Esq.
Certified Specialist, Taxation Law
State Bar of California
Board of Legal Specialization

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Harlan Lunsford <hlunsford[at]bellsouth.net> wrote:
- quote -

For travel to audits sites within my metropolitan area, I
use public transportation. In my area, this runs appx. $210
per month. There is no reimbursement by my employer.

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- quote -

Well, I have received so many conflicting answers (from
other people and groups) that I'm more confused than ever.
I have to say, your answers do make sense. But, I thought
that Rev. Rul. 90-23 provides that, as long as a person has
a regular place of work, then all travel between that
employee's residence and any temporary place of work is
deductible, even if it is in the same metropolitan area. I
know this is counterintuitive, but then, isn't most of the
Internal Revenue Code? ;-)

Please see these articles, if you have a few minutes. As I
read them, Rev. Rul. 90-23, 1990-1 C.B. 28 provides that
travel between home and a temporary work location within the
taxpayer's metropolitan area IS deductible IF the taxpayer
has a regular work location away from his/her residence.
This is distinguished from taxpayer who has no regular work
location, in which case, such travel is not deductible
(under Rev. Rul. 190).

http://www.fool.com/school/taxes/taxes04.htm
http://www.unclefed.com/Tax-Bulls/1999/rr99-07.pdf
http://www.paylesstax.com/irs/commuting_expenses.html

One of the examples given in the first article is this:

A taxpayer has one regular place of business and commutes
daily from home to work. Occasionally, the taxpayer stops by
a client's office (a temporary work location) in the morning to
conduct business. The client's office is located about half way to
the taxpayer's regular place of business. All travel expenses would
be deductible on the mornings the taxpayer stops at the client's
office -- both the travel from home to the temporary work location,
and the travel from the temporary work location to the regular
place of business. The travel from work to home in the evening
would be non-deductible commuting.

The second link, which is an analysis of rulings and
decisions pertaining to IRC § 162, states that "Rev. Rul.
90-23, 1990-1 C.B. 28, distinguishes Rev. Rul. 190 and
holds, in part, that, for a taxpayer who has one or more
regular places of business, daily transportation expenses
paid or incurred in going between the taxpayer's residence
and temporary work locations are deductible business
expenses under § 162(a), regardless of the distance."

What am I missing?

Dana

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"Whippy" <noemail[at]thisaddress.duh> wrote:

- quote -

transportation expenses:

"Temporary work location. If you have one or more regular
work locations away from your home and you commute to a
temporary work location in the same trade or business, you
can deduct the expenses of the daily round-trip
transportation between your home and the temporary location,
regardless of distance.

"If your employment at a work location is realistically
expected to last (and does in fact last) for 1 year or less,
the employment is temporary unless there are facts and
circumstances that would indicate otherwise."

If this isn't the best answer you've heard yet, please write
back and let us know why.

Harry B.

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- quote -

It's actually pretty simple: travel from home to the first
job location and from the last job location home is
commuting; not deductible. Only travel between jobs is
deductible. Where you live is a personal choice. There's
even a similar case of a Manhattan police officer who took
the patrol car home in northern NJ; the court disallowed the
commute.

There is an exception for travel to a temporary jobsite
outside the metropolitan area of the base of operations (for
example, you have an audit in New Haven).

--
Thomas E Healy, CPA, PC
1650 38th St., Ste 202W
Boulder, CO 80301
Please send email to: tom[at]tomhealycpa.com, since I block all email at my
newsgroup address.
phone (303) 443-1804
fax (720) 489-3772

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Whippy wrote:

- quote -

Question: how much does your company reimburse you per mile?

ChEAr$,
Harlan Lunsford, EA n LA

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Establish a home office in New Jersey. Problem solved!

Beach Exec

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- quote -

Dana, your commuting costs (going to first job of day and
coming home from last job of day) are not deductible.

If you go from job to job, after arriving at the first job,
those expenses may be deductible at the rate of .0375 cents
per mile, in 2004, as an employee business expense.

"Jack" - John H. Fisher - TaxService[at]aol.com
Philadelphia, Pa - Atlantic City, NJ - West Wildwood, NJ
My Newsgroups & Boards at: http://members.aol.com/TaxService/index.html

Where Ignorance is bliss, 'tis folly to be wise!=

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I live in New Jersey and work in NYC as an auditor. My
office is located in lower Manhattan, but I am frequently
assigned to work at different firms (auditees) throughout
Manhattan. I normally spend between 4 and 12 weeks at each
firm, depending on the audit. I maintain a desk at my
office and work from there approximately 30% of the time
(whenever I'm not out on assignment).

Since the audit sites are temporary work locations, can I
deduct my commuting costs when I am traveling between home
and the audit sites? If so, then would it make a difference
if an audit site happens to be only three blocks from my
office?

The IRS rules seem very confusing. Any advice would be most
appreciated.

- Dana

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