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2 Cases of Driving To and From Home That Are Tax-Deductible

In our previous post, we discussed the cases in which you can deduct your mileage expenses from your taxable income, using the IRS Mileage Rate. The IRS normally excludes home-work commute from "deductible mileage". However, there are two exceptions to this rule:

1. Home Office

If your home is your main place of business, your travel to and from other business locations is fully tax deductible. For example, if you conduct most of your work at home, but also meet clients outside or go to a secondary office location, you may deduct your mileage expenses for the travel between these locations.

2. Temporary Assignment away from your Tax Home

Generally, your tax home is your regular place of business or post of duty, regardless of where you maintain your family home. It includes the entire city or general area in which your business or work is located.

In case you are contracted to perform a temporary assignment away from your tax home for a duration of 1 year or less, any trips you make during that period are considered business trips and are fully tax deductible.

Sources: IRS (https://goo.gl/f1htI2)

Rotem Rubnov

Rotem Rubnov

Software developer, entrepreneur, managing director at 100grams (https://100grams.io), founder of PSNGR (https://psngr.co), father, athletics enthusiast.

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