By month:August 2012
Your tax deductions for the transportation component of your overnight business travel face a set of rules separate from the business-day rules we examined last month. When in the 50 United States and the District of Columbia, you deduct your transportation cost under the 51/49 test. When you travel outside the 50 United States and the District of Columbia, you are subject to the 76/24 test for deducting your business transportation. And, as mentioned, the calculation for deducting the cost of transportation is separate and apart from calculations for deducting meals and lodging.
Here are four answers to questions you might have regarding your business mileage, such as how to treat mileage from an administrative office in the home to yoga and then to your downtown office. Or how would you treat mileage to a Lions, Rotary, or Shriners meeting or activity? This article gives you both ideas and answers.
When you use a motorhome for business travel, what tax rules do you trigger? For example, is the motorhome for lodging or transportation? Lodging has one set of rules. Transportation has a different set of rules.
Do you operate your business as an S corporation? If so, how does the home-office deduction work for the employee-owner? Here are six answers that the S corporation owner needs for the home-office deduction. One of the six answers gives you ideas on how you can comply with the “convenience-of-the-employer” test.
Tax law’s passive-loss rules are pretty much the grim reaper of current-year tax benefits from your rental properties. Note the words “current year.” Those passive losses trapped this year are available down the road. With planning, you might be able to release those trapped tax benefits when you want.
The tax law definition of your tax home can jump up and bite you when you have a business operation away from your personal residence. Since tax law does not govern where you live, it treats your decision on where to locate your home as a personal decision that gives you a personal location. When your tax home is not near your personal home, you can lose both (a) overnight business travel deductions and (2) business mileage from an office inside the home to a regular office outside the home.
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