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Commuting vs. Tax Deductible Transportation Expenses 
 
by kmhagen July 26, 2005

Commuting Expenses

The transportation cost for getting from your home to your regular place of work and back home again, whether by train, bus, underground train, taxi, or by driving your own car, are personal commuting expenses and are not deductible. Commuting expenses are not deductible no matter how far your home is from your work, and fact that you may be doing work along the way, does not change the commuting expense from a personal expense to a business expense.

Parking At Work and Advertising on Your Vehicle

Parking fees at your regular place of work are considered part of your commuting expense, and are also not deductible. Also, placing display material on your vehicle that advertises your business does not change your vehicle from personal use to business use, and the transportation expenses from your home to your regular workplace would still be nondeductible commuting expenses.

Hauling Tools in Your Vehicle

Hauling tools in your vehicle from your home to work does not change the fact that these are still commuting expenses. But if you have to incur additional expenses, such as renting a trailer to haul tools and equipment, this additional cost would be a deductible expense.

If you haul tools because you are going to a jobsite other than your regular place of work, your transportation expenses are deductible if the jobsite is considered a temporary workplace.

Union Hall

Union members who get their work assignments from a union hall and then go to a worksite cannot deduct transportation expenses in getting from the union hall to the worksite. The union hall is not considered a regular place of work, even though you have to go there to get your work assignment, and transportation expenses from your home to the union hall, and then to the worksite, are considered commuting expenses.

Car Pools

Using your vehicle in a non-profit car pool is still a nondeductible commuting expense. The amounts you receive from other passengers are a reimbursement of your expenses. You do not include them in your income and cannot deduct your expenses.

But, if you operate a car pool for profit, you would include the payments you receive in your income and could deduct your expenses.

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