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 is a tax deductible transportation expense.
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 deductible:
- 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.
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.
📥 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, Inc.
Falcon Expenses is an iOS solution for expense tracking and management. Scan receipts, we type merchant, date and amount, auto-track mileage expenses via GPS and log billable hours with an integrated timer. Quickly organize expenses by time period, project or client and easily prepare reports for email to anyone in PDF or spreadsheet formats, all from your phone. Use for reimbursements, taxes, record keeping or invoicing. Falcon Expenses is great for professionals, freelancers, realtors, business travelers, truckers and more. Find out more, here.
