What Qualifies as Tax Deductible Business Transportation Expenses?
Whether the taxpayer’s transportation is by train, taxi, bus, air, rail, or their personal car, this post clarifies what are tax deductible transportation expenses.
Often many taxpayers are concerned about what qualifies are tax-deductible business transportation expenses.
Tax-deductible business transportation expenses include:
- Temporary Workplace: Getting from your home to a temporary workplace when you have one or more regular places of work.
- Client Visits: Getting to and from client and customers for business-related visits.
- Between Offices: Use of your car to get from one place of business to another place of business.
- Meetings: Going to a business meeting away from your regular place of work.
- Errands: Trips to the bank, post office, office supply store, etc., for business-related activities.
For example, if the taxpayer’s job requires them to travel and visit clients on a daily basis, these transportation expenses are tax deductible. More specifically, these expenses are tax deductible as business expenses on the individual taxpayer’s income tax return.
For example, if the taxpayer uses a bus, subway, or taxi to commute between their home and office, these costs would qualify as personal expenses. Further, even if the taxpayer does work during the commute trip, they cannot deduct these commuting expenses. Also, parking fees and/or tolls that the taxpayer incurs during their daily commute are also not tax deductible transportation expenses.
When qualified tax-deductible transportation expenses are completed using the taxpayers’ car, the taxpayer has two options available for calculating the deduction amount. These methods are the Standard Mileage Rate method and the Actual Car Expenses method. More details on these methods can be found in the post, How to Maximize Business Use Car Tax Deductions.
Further, tolls, parking fees and other transportation expenses incurred during work trips are also tax deductible as business transportation expenses.
Meet Falcon
With that said, learn how Falcon Expenses helps you to capture mileage expenses and maximize transportation expense deductions. Falcon Expenses is a fully mobile expense reporting app for iOS. Whether you’re the employer, employee, or self-employed, Falcon Expenses makes it seamless and easy to log and track business transportation expenses. With Falcon Expenses, track mileage expenses in addition to scanning receipts, entering cash expenses, and logging billable hours.
Below are some posts to acquaint you with Falcon Expenses features and their many benefits:
- How to Scan and Manage Receipts with Falcon Expenses
- How to Track Mileage Expenses with Falcon Expenses
- Falcon Expenses Expense Report Template & What Expense Reports Look Like
- How to Create an Expense Report with Falcon Expenses
- What is Included in Falcon Expenses Mileage Expense Log
Download Falcon Expenses
Falcon Expenses is free to download. If you’re on a desktop it’s best to use your iPhone and search for Falcon Expenses on the app store.
Business transportation expenses that are not tax write offs:
- Overnight Travel: Taxpayer travel away from their home, overnight for work, would fall under travel expenses. More details on the IRS requirements for tax-deductible travel expenses can be found in the Falcon Expenses resources post, What Qualifies as Tax Deductible Business Travel Expenses.
- Between Home and Office: Traveling in your car to and from your home to your ordinary place of work.
- And, daily transportation expenses taxpayers incur while traveling from home to one more regular places of business are generally not deductible.
Download Falcon Expenses
Falcon Expenses is free to download. If you’re on a desktop it’s best to use your iPhone and search for Falcon Expenses on the app store.
About Falcon Expenses
Falcon Expenses is a top-rated mobile application for self employed and small businesses to track expenses and tax deductions. Falcon customers record $6,600, on average, in annual tax deductions. Get started today. The longer you wait, the more tax deductions you miss out on.
Automatically track mileage expenses and expenses, keep an odometer log, receipt vault and log billable hours. Quickly organize expenses by time period, project, or client. Easily prepare reports for email to anyone in PDF or spreadsheet formats, all from your phone. Use for keeping track of tax deductions, reimbursements, taxes, record keeping, and more. Falcon Expenses is great for self-employed, freelancers, realtors, business travelers, truckers, and more. Find out more, here.
Check out the following articles about Falcon Expenses features and services:
- How to Scan and Manage Receipts with Falcon Expenses
- How to Track Mileage Expenses with Falcon Expenses
- Falcon Expenses Expense Report Template & What Expense Reports Look Like
- How to Create an Expense Report with Falcon Expenses
- What is Included in Falcon Expenses Mileage Expense Log
