Travel and Transportation Expenses — Deduction and Recordkeeping Requirements (Portfolio 519)
This Portfolio explains the substantive and procedural rules for deducting travel, transportation, and commuting expenses and analyzes the problems that arise with self-employment.
Tax Portfolio, Travel and Transportation Expenses – Deductions and Recordkeeping Requirements, explains the substantive and procedural rules for deducting travel, transportation and commuting expenses. It analyzes the problems which arise in determining the deductibility of travel expenses incurred in an employment or self-employment context, including whether a particular expense is properly characterized as a personal or a business expenditure and whether the expense relates to travel away from home. In addition, the Portfolio examines the conditions under which commuting costs and nonbusiness travel expenses can be deducted.
Specifically, the Portfolio contains an exhaustive analysis of the deductions available for the business use of automobiles and other types of vehicles, as well as the limitations on the deductibility of such expenses, in addition to an examination of the tax consequences of employee use of employer-provided transportation and other fringe benefits. Finally, because the taxpayer is required to establish the expenses claimed as deductions, the Portfolio discusses in detail all applicable substantiation rules and reporting requirements.
The information and analysis in this Portfolio will assist the practitioner or business person in ensuring that all of the requirements for deductibility are met. This is vital because, unless strict attention is paid to the requirements of the statute and regulations, the employer and the employee may both lose the benefit of otherwise allowable deductions.
Table of Contents
II. Travel Expenses
III. Transportation and Commuting Expenses
IV. Deductions and Credits for Business and Income-Producing Use of Passenger Automobiles and Other Listed Property
V. Personal Use of an Employer’s Automobile and Other Includible and Excludible Fringe Benefits
VI. Substantiation, Reporting and Recordkeeping Requirements Relating to Travel and Transportation Expenses