Filing Your Taxes Online is Fast, Easy and Secure.
Start now and receive your tax refund in as little as 7 days.

1. Get Answers

Your online questions are customized to your unique tax situation.

2. Maximize your Refund

Find tax credits for everything from school tuition to buying a hybri

3. E-File for FREE

E-file free with direct deposit to get your refund in as few as 7 days.

Filing your taxes with paper mail can be difficult and it could take weeks for your refund to arrive. IRS e-file is easy, fast and secure. There is no paperwork going to the IRS so tax refunds can be processed in as little as 7 days with direct deposit. As you prepare your taxes online, you can see your tax refund in real time.

FREE audit support and representation from an enrolled agent – NEW and only from H&R Block

Tax Unemployed

H And R Block OnlineIrs Ez Form 2013Mypay GovWhat Forms Do I Need To Amend My TaxesPrint 1040ez Federal Tax FormCan I File 2012 Taxes OnlineForm 1040ez2012 1040ez Tax Form1040nr Ez SoftwareEfile State TaxesTaxact LoginMyfreetaxesEz Tax Form OnlineVita Tax PreparationFederal Tax FilingIrs 1040x FormHow To Fill Out 1040ez FormFile Taxes Electronically 20111040 Ez OnlineFile 2011 Tax OnlineTax Form For StudentsFile My Taxes For Free2013 Form 1040xAmmend TaxesState Tax Forms 2013Efile 1040nr Ez 540nr ShortMilitary DiscountTax AmendmentsFile Free State Return Online1040ez File2011 Tax FormsFiling An Amended Tax ReturnTurbo Tax FilingState Tax ExtensionForm 1040x FillableIrs2008 Tax Software Free DownloadHr Block Tax PreparationHow Can I Efile My State Taxes For FreeIrs Instructions 1040ez

Tax Unemployed

Tax unemployed Publication 523 - Additional Material Prev  Up  Next   Home   More Online Publications
Español

Consumer Protection Offices

City, county, regional, and state consumer offices offer a variety of important services. They might mediate complaints, conduct investigations, prosecute offenders of consumer laws, license and regulate professional service providers, provide educational materials and advocate for consumer rights. To save time, call before sending a written complaint. Ask if the office handles the type of complaint you have and if complaint forms are provided.

State Consumer Protection Offices

Virgin Islands Department of Licensing and Consumer Affairs

Website: Virgin Islands Department of Licensing and Consumer Affairs

Address: Virgin Islands Department of Licensing and Consumer Affairs
3000 Golden Rock Shopping Center, Suite 9
St. Croix, VI 00820

Phone Number: 340-773-2226

Virgin Islands Department of Licensing and Consumer Affairs

Website: Virgin Islands Department of Licensing and Consumer Affairs

Address: Virgin Islands Department of Licensing and Consumer Affairs
Property and Procurement Bldg.
8201 Sub Base, Suite 1
St. Thomas, VI 00802

Phone Number: 340-774-3130

Back to Top

Banking Authorities

The officials listed in this section regulate and supervise state-chartered banks. Many of them handle or refer problems and complaints about other types of financial institutions as well. Some also answer general questions about banking and consumer credit. If you are dealing with a federally chartered bank, check Federal Agencies.

Office of the Lieutenant Governor

Website: Office of the Lieutenant Governor

Address: Office of the Lieutenant Governor
Division of Banking and Insurance
5049 Kongens Gade
St. Thomas, VI 00802

Phone Number: 340-774-7166

Back to Top

Insurance Regulators

Each state has its own laws and regulations for each type of insurance. The officials listed in this section enforce these laws. Many of these offices can also provide you with information to help you make informed insurance buying decisions.

Division of Banking and Insurance

Website: Division of Banking and Insurance

Address: Division of Banking and Insurance
5049 Kongens Gade
St. Thomas, VI 00802

Phone Number: 340-774-7166

Back to Top

The Tax Unemployed

Tax unemployed 26. Tax unemployed   Car Expenses and Other Employee Business Expenses Table of Contents What's New Introduction Useful Items - You may want to see: Travel ExpensesTraveling Away From Home Tax Home Temporary Assignment or Job What Travel Expenses Are Deductible? Travel in the United States Travel Outside the United States Conventions Entertainment Expenses50% Limit What Entertainment Expenses Are Deductible? What Entertainment Expenses Are Not Deductible? Gift Expenses Transportation ExpensesArmed Forces reservists. Tax unemployed Parking fees. Tax unemployed Advertising display on car. Tax unemployed Car pools. Tax unemployed Hauling tools or instruments. Tax unemployed Union members' trips from a union hall. Tax unemployed Car Expenses RecordkeepingHow To Prove Expenses How Long To Keep Records and Receipts How To ReportGifts. Tax unemployed Statutory employees. Tax unemployed Reimbursements Completing Forms 2106 and 2106-EZ Special Rules What's New Standard mileage rate. Tax unemployed  For 2013, the standard mileage rate for the cost of operating your car for business use is 56½ cents per mile. Tax unemployed Car expenses and use of the standard mileage rate are explained under Transportation Expenses , later. Tax unemployed Depreciation limits on cars, trucks, and vans. Tax unemployed  For 2013, the first-year limit on the total section 179 deduction, special depreciation allowance, and depreciation deduction for cars remains at $11,160 ($3,160 if you elect not to claim the special depreciation allowance). Tax unemployed For trucks and vans the first-year limit remains at $11,360 ($3,360 if you elect not to claim the special depreciation allowance). Tax unemployed For more information, see Depreciation limits in Publication 463. Tax unemployed Introduction You may be able to deduct the ordinary and necessary business-related expenses you have for: Travel, Entertainment, Gifts, or Transportation. Tax unemployed An ordinary expense is one that is common and accepted in your trade or business. Tax unemployed A necessary expense is one that is helpful and appropriate for your business. Tax unemployed An expense does not have to be required to be considered necessary. Tax unemployed This chapter explains the following. Tax unemployed What expenses are deductible. Tax unemployed How to report your expenses on your return. Tax unemployed What records you need to prove your expenses. Tax unemployed How to treat any expense reimbursements you may receive. Tax unemployed Who does not need to use this chapter. Tax unemployed   If you are an employee, you will not need to read this chapter if all of the following are true. Tax unemployed You fully accounted to your employer for your work-related expenses. Tax unemployed You received full reimbursement for your expenses. Tax unemployed Your employer required you to return any excess reimbursement and you did so. Tax unemployed There is no amount shown with a code “L” in box 12 of your Form W-2, Wage and Tax Statement. Tax unemployed If you meet all of these conditions, there is no need to show the expenses or the reimbursements on your return. Tax unemployed See Reimbursements , later, if you would like more information on reimbursements and accounting to your employer. Tax unemployed    If you meet these conditions and your employer included reimbursements on your Form W-2 in error, ask your employer for a corrected Form W-2. Tax unemployed Useful Items - You may want to see: Publication 463 Travel, Entertainment, Gift, and Car Expenses 535 Business Expenses Form (and Instructions) Schedule A (Form 1040) Itemized Deductions Schedule C (Form 1040) Profit or Loss From Business Schedule C-EZ (Form 1040) Net Profit From Business Schedule F (Form 1040) Profit or Loss From Farming Form 2106 Employee Business Expenses Form 2106-EZ Unreimbursed Employee Business Expenses Travel Expenses If you temporarily travel away from your tax home, you can use this section to determine if you have deductible travel expenses. Tax unemployed This section discusses: Traveling away from home, Tax home, Temporary assignment or job, and What travel expenses are deductible. Tax unemployed It also discusses the standard meal allowance, rules for travel inside and outside the United States, and deductible convention expenses. Tax unemployed Travel expenses defined. Tax unemployed   For tax purposes, travel expenses are the ordinary and necessary expenses (defined earlier) of traveling away from home for your business, profession, or job. Tax unemployed   You will find examples of deductible travel expenses in Table 26-1 . Tax unemployed Traveling Away From Home You are traveling away from home if: Your duties require you to be away from the general area of your tax home (defined later) substantially longer than an ordinary day's work, and You need to sleep or rest to meet the demands of your work while away from home. Tax unemployed This rest requirement is not satisfied by merely napping in your car. Tax unemployed You do not have to be away from your tax home for a whole day or from dusk to dawn as long as your relief from duty is long enough to get necessary sleep or rest. Tax unemployed Example 1. Tax unemployed You are a railroad conductor. Tax unemployed You leave your home terminal on a regularly scheduled round-trip run between two cities and return home 16 hours later. Tax unemployed During the run, you have 6 hours off at your turnaround point where you eat two meals and rent a hotel room to get necessary sleep before starting the return trip. Tax unemployed You are considered to be away from home. Tax unemployed Example 2. Tax unemployed You are a truck driver. Tax unemployed You leave your terminal and return to it later the same day. Tax unemployed You get an hour off at your turnaround point to eat. Tax unemployed Because you are not off to get necessary sleep and the brief time off is not an adequate rest period, you are not traveling away from home. Tax unemployed Members of the Armed Forces. Tax unemployed   If you are a member of the U. Tax unemployed S. Tax unemployed Armed Forces on a permanent duty assignment overseas, you are not traveling away from home. Tax unemployed You cannot deduct your expenses for meals and lodging. Tax unemployed You cannot deduct these expenses even if you have to maintain a home in the United States for your family members who are not allowed to accompany you overseas. Tax unemployed If you are transferred from one permanent duty station to another, you may have deductible moving expenses, which are explained in Publication 521, Moving Expenses. Tax unemployed    A naval officer assigned to permanent duty aboard a ship that has regular eating and living facilities has a tax home aboard ship for travel expense purposes. Tax unemployed Tax Home To determine whether you are traveling away from home, you must first determine the location of your tax home. Tax unemployed Generally, your tax home is your regular place of business or post of duty, regardless of where you maintain your family home. Tax unemployed It includes the entire city or general area in which your business or work is located. Tax unemployed If you have more than one regular place of business, your tax home is your main place of business. Tax unemployed See Main place of business or work , later. Tax unemployed If you do not have a regular or a main place of business because of the nature of your work, then your tax home may be the place where you regularly live. Tax unemployed See No main place of business or work , later. Tax unemployed If you do not have a regular or a main place of business or post of duty and there is no place where you regularly live, you are considered an itinerant (a transient) and your tax home is wherever you work. Tax unemployed As an itinerant, you cannot claim a travel expense deduction because you are never considered to be traveling away from home. Tax unemployed Main place of business or work. Tax unemployed   If you have more than one place of business or work, consider the following when determining which one is your main place of business or work. Tax unemployed The total time you ordinarily spend in each place. Tax unemployed The level of your business activity in each place. Tax unemployed Whether your income from each place is significant or insignificant. Tax unemployed Example. Tax unemployed You live in Cincinnati where you have a seasonal job for 8 months each year and earn $40,000. Tax unemployed You work the other 4 months in Miami, also at a seasonal job, and earn $15,000. Tax unemployed Cincinnati is your main place of work because you spend most of your time there and earn most of your income there. Tax unemployed No main place of business or work. Tax unemployed   You may have a tax home even if you do not have a regular or main place of business or work. Tax unemployed Your tax home may be the home where you regularly live. Tax unemployed Factors used to determine tax home. Tax unemployed   If you do not have a regular or main place of business or work, use the following three factors to determine where your tax home is. Tax unemployed You perform part of your business in the area of your main home and use that home for lodging while doing business in the area. Tax unemployed You have living expenses at your main home that you duplicate because your business requires you to be away from that home. Tax unemployed You have not abandoned the area in which both your historical place of lodging and your claimed main home are located; you have a member or members of your family living at your main home; or you often use that home for lodging. Tax unemployed   If you satisfy all three factors, your tax home is the home where you regularly live. Tax unemployed If you satisfy only two factors, you may have a tax home depending on all the facts and circumstances. Tax unemployed If you satisfy only one factor, you are an itinerant; your tax home is wherever you work and you cannot deduct travel expenses. Tax unemployed Example. Tax unemployed You are single and live in Boston in an apartment you rent. Tax unemployed You have worked for your employer in Boston for a number of years. Tax unemployed Your employer enrolls you in a 12-month executive training program. Tax unemployed You do not expect to return to work in Boston after you complete your training. Tax unemployed During your training, you do not do any work in Boston. Tax unemployed Instead, you receive classroom and on-the-job training throughout the United States. Tax unemployed You keep your apartment in Boston and return to it frequently. Tax unemployed You use your apartment to conduct your personal business. Tax unemployed You also keep up your community contacts in Boston. Tax unemployed When you complete your training, you are transferred to Los Angeles. Tax unemployed You do not satisfy factor (1) because you did not work in Boston. Tax unemployed You satisfy factor (2) because you had duplicate living expenses. Tax unemployed You also satisfy factor (3) because you did not abandon your apartment in Boston as your main home, you kept your community contacts, and you frequently returned to live in your apartment. Tax unemployed Therefore, you have a tax home in Boston. Tax unemployed Tax home different from family home. Tax unemployed   If you (and your family) do not live at your tax home (defined earlier), you cannot deduct the cost of traveling between your tax home and your family home. Tax unemployed You also cannot deduct the cost of meals and lodging while at your tax home. Tax unemployed See Example 1 . Tax unemployed   If you are working temporarily in the same city where you and your family live, you may be considered as traveling away from home. Tax unemployed See Example 2 . Tax unemployed Example 1. Tax unemployed You are a truck driver and you and your family live in Tucson. Tax unemployed You are employed by a trucking firm that has its terminal in Phoenix. Tax unemployed At the end of your long runs, you return to your home terminal in Phoenix and spend one night there before returning home. Tax unemployed You cannot deduct any expenses you have for meals and lodging in Phoenix or the cost of traveling from Phoenix to Tucson. Tax unemployed This is because Phoenix is your tax home. Tax unemployed Example 2. Tax unemployed Your family home is in Pittsburgh, where you work 12 weeks a year. Tax unemployed The rest of the year you work for the same employer in Baltimore. Tax unemployed In Baltimore, you eat in restaurants and sleep in a rooming house. Tax unemployed Your salary is the same whether you are in Pittsburgh or Baltimore. Tax unemployed Because you spend most of your working time and earn most of your salary in Baltimore, that city is your tax home. Tax unemployed You cannot deduct any expenses you have for meals and lodging there. Tax unemployed However, when you return to work in Pittsburgh, you are away from your tax home even though you stay at your family home. Tax unemployed You can deduct the cost of your round trip between Baltimore and Pittsburgh. Tax unemployed You can also deduct your part of your family's living expenses for meals and lodging while you are living and working in Pittsburgh. Tax unemployed Temporary Assignment or Job You may regularly work at your tax home and also work at another location. Tax unemployed It may not be practical to return to your tax home from this other location at the end of each work day. Tax unemployed Temporary assignment vs. Tax unemployed indefinite assignment. Tax unemployed   If your assignment or job away from your main place of work is temporary, your tax home does not change. Tax unemployed You are considered to be away from home for the whole period you are away from your main place of work. Tax unemployed You can deduct your travel expenses if they otherwise qualify for deduction. Tax unemployed Generally, a temporary assignment in a single location is one that is realistically expected to last (and does in fact last) for 1 year or less. Tax unemployed   However, if your assignment or job is indefinite, the location of the assignment or job becomes your new tax home and you cannot deduct your travel expenses while there. Tax unemployed An assignment or job in a single location is considered indefinite if it is realistically expected to last for more than 1 year, whether or not it actually lasts for more than 1 year. Tax unemployed   If your assignment is indefinite, you must include in your income any amounts you receive from your employer for living expenses, even if they are called travel allowances and you account to your employer for them. Tax unemployed You may be able to deduct the cost of relocating to your new tax home as a moving expense. Tax unemployed See Publication 521 for more information. Tax unemployed Exception for federal crime investigations or prosecutions. Tax unemployed   If you are a federal employee participating in a federal crime investigation or prosecution, you are not subject to the 1-year rule. Tax unemployed This means you may be able to deduct travel expenses even if you are away from your tax home for more than 1 year, provided you meet the other requirements for deductibility. Tax unemployed   For you to qualify, the Attorney General (or his or her designee) must certify that you are traveling: For the federal government, In a temporary duty status, and To investigate or prosecute, or provide support services for the investigation or prosecution of a federal crime. Tax unemployed Determining temporary or indefinite. Tax unemployed   You must determine whether your assignment is temporary or indefinite when you start work. Tax unemployed If you expect an assignment or job to last for 1 year or less, it is temporary unless there are facts and circumstances that indicate otherwise. Tax unemployed An assignment or job that is initially temporary may become indefinite due to changed circumstances. Tax unemployed A series of assignments to the same location, all for short periods but that together cover a long period, may be considered an indefinite assignment. Tax unemployed Going home on days off. Tax unemployed   If you go back to your tax home from a temporary assignment on your days off, you are not considered away from home while you are in your hometown. Tax unemployed You cannot deduct the cost of your meals and lodging there. Tax unemployed However, you can deduct your travel expenses, including meals and lodging, while traveling between your temporary place of work and your tax home. Tax unemployed You can claim these expenses up to the amount it would have cost you to stay at your temporary place of work. Tax unemployed   If you keep your hotel room during your visit home, you can deduct the cost of your hotel room. Tax unemployed In addition, you can deduct your expenses of returning home up to the amount you would have spent for meals had you stayed at your temporary place of work. Tax unemployed Probationary work period. Tax unemployed   If you take a job that requires you to move, with the understanding that you will keep the job if your work is satisfactory during a probationary period, the job is indefinite. Tax unemployed You cannot deduct any of your expenses for meals and lodging during the probationary period. Tax unemployed What Travel Expenses Are Deductible? Once you have determined that you are traveling away from your tax home, you can determine what travel expenses are deductible. Tax unemployed You can deduct ordinary and necessary expenses you have when you travel away from home on business. Tax unemployed The type of expense you can deduct depends on the facts and your circumstances. Tax unemployed Table 26-1 summarizes travel expenses you may be able to deduct. Tax unemployed You may have other deductible travel expenses that are not covered there, depending on the facts and your circumstances. Tax unemployed When you travel away from home on business, you should keep records of all the expenses you have and any advances you receive from your employer. Tax unemployed You can use a log, diary, notebook, or any other written record to keep track of your expenses. Tax unemployed The types of expenses you need to record, along with supporting documentation, are described in Table 26-2 , later. Tax unemployed Separating costs. Tax unemployed   If you have one expense that includes the costs of meals, entertainment, and other services (such as lodging or transportation), you must allocate that expense between the cost of meals and entertainment and the cost of other services. Tax unemployed You must have a reasonable basis for making this allocation. Tax unemployed For example, you must allocate your expenses if a hotel includes one or more meals in its room charge. Tax unemployed Travel expenses for another individual. Tax unemployed   If a spouse, dependent, or other individual goes with you (or your employee) on a business trip or to a business convention, you generally cannot deduct his or her travel expenses. Tax unemployed Employee. Tax unemployed   You can deduct the travel expenses of someone who goes with you if that person: Is your employee, Has a bona fide business purpose for the travel, and Would otherwise be allowed to deduct the travel expenses. Tax unemployed Business associate. Tax unemployed   If a business associate travels with you and meets the conditions in (2) and (3) above, you can deduct the travel expenses you have for that person. Tax unemployed A business associate is someone with whom you could reasonably expect to engage or deal in the active conduct of your business. Tax unemployed A business associate can be a current or prospective (likely to become) customer, client, supplier, employee, agent, partner, or professional advisor. Tax unemployed Bona fide business purpose. Tax unemployed   A bona fide business purpose exists if you can prove a real business purpose for the individual's presence. Tax unemployed Incidental services, such as typing notes or assisting in entertaining customers, are not enough to make the expenses deductible. Tax unemployed Example. Tax unemployed Jerry drives to Chicago on business and takes his wife, Linda, with him. Tax unemployed Linda is not Jerry's employee. Tax unemployed Linda occasionally types notes, performs similar services, and accompanies Jerry to luncheons and dinners. Tax unemployed The performance of these services does not establish that her presence on the trip is necessary to the conduct of Jerry's business. Tax unemployed Her expenses are not deductible. Tax unemployed Jerry pays $199 a day for a double room. Tax unemployed A single room costs $149 a day. Tax unemployed He can deduct the total cost of driving his car to and from Chicago, but only $149 a day for his hotel room. Tax unemployed If he uses public transportation, he can deduct only his fare. Tax unemployed Table 26-1. Tax unemployed Travel Expenses You Can Deduct This chart summarizes expenses you can deduct when you travel away from home for business purposes. Tax unemployed IF you have expenses for. Tax unemployed . Tax unemployed . Tax unemployed THEN you can deduct the cost of. Tax unemployed . Tax unemployed . Tax unemployed transportation travel by airplane, train, bus, or car between your home and your business destination. Tax unemployed If you were provided with a ticket or you are riding free as a result of a frequent traveler or similar program, your cost is zero. Tax unemployed If you travel by ship, see Luxury Water Travel and Cruise ships (under Conventions) in Publication 463 for additional rules and limits. Tax unemployed taxi, commuter bus, and airport limousine fares for these and other types of transportation that take you between: The airport or station and your hotel, and The hotel and the work location of your customers or clients, your business meeting place, or your temporary work location. Tax unemployed baggage and shipping sending baggage and sample or display material between your regular and temporary work locations. Tax unemployed car operating and maintaining your car when traveling away from home on business. Tax unemployed You can deduct actual expenses or the standard mileage rate as well as business-related tolls and parking. Tax unemployed If you rent a car while away from home on business, you can deduct only the business-use portion of the expenses. Tax unemployed lodging and meals your lodging and meals if your business trip is overnight or long enough that you need to stop for sleep or rest to properly perform your duties. Tax unemployed Meals include amounts spent for food, beverages, taxes, and related tips. Tax unemployed See Meals and Incidental Expenses for additional rules and limits. Tax unemployed cleaning dry cleaning and laundry. Tax unemployed telephone business calls while on your business trip. Tax unemployed This includes business communication by fax machine or other communication devices. Tax unemployed tips tips you pay for any expenses in this chart. Tax unemployed other other similar ordinary and necessary expenses related to your business travel. Tax unemployed These expenses might include transportation to or from a business meal, public stenographer's fees, computer rental fees, and operating and maintaining a house trailer. Tax unemployed Meals and Incidental Expenses You can deduct the cost of meals in either of the following situations. Tax unemployed It is necessary for you to stop for substantial sleep or rest to properly perform your duties while traveling away from home on business. Tax unemployed The meal is business-related entertainment. Tax unemployed Business-related entertainment is discussed under Entertainment Expenses , later. Tax unemployed The following discussion deals only with meals (and incidental expenses) that are not business-related entertainment. Tax unemployed Lavish or extravagant. Tax unemployed   You cannot deduct expenses for meals that are lavish or extravagant. Tax unemployed An expense is not considered lavish or extravagant if it is reasonable based on the facts and circumstances. Tax unemployed Expenses will not be disallowed merely because they are more than a fixed dollar amount or take place at deluxe restaurants, hotels, nightclubs, or resorts. Tax unemployed 50% limit on meals. Tax unemployed   You can figure your meal expenses using either of the following methods. Tax unemployed Actual cost. Tax unemployed The standard meal allowance. Tax unemployed Both of these methods are explained below. Tax unemployed But, regardless of the method you use, you generally can deduct only 50% of the unreimbursed cost of your meals. Tax unemployed   If you are reimbursed for the cost of your meals, how you apply the 50% limit depends on whether your employer's reimbursement plan was accountable or nonaccountable. Tax unemployed If you are not reimbursed, the 50% limit applies whether the unreimbursed meal expense is for business travel or business entertainment. Tax unemployed The 50% limit is explained later under Entertainment Expenses . Tax unemployed Accountable and nonaccountable plans are discussed later under Reimbursements . Tax unemployed Actual cost. Tax unemployed   You can use the actual cost of your meals to figure the amount of your expense before reimbursement and application of the 50% deduction limit. Tax unemployed If you use this method, you must keep records of your actual cost. Tax unemployed Standard meal allowance. Tax unemployed   Generally, you can use the “standard meal allowance” method as an alternative to the actual cost method. Tax unemployed It allows you to use a set amount for your daily meals and incidental expenses (M&IE), instead of keeping records of your actual costs. Tax unemployed The set amount varies depending on where and when you travel. Tax unemployed In this chapter, “standard meal allowance” refers to the federal rate for M&IE, discussed later under Amount of standard meal allowance . Tax unemployed If you use the standard meal allowance, you still must keep records to prove the time, place, and business purpose of your travel. Tax unemployed See Recordkeeping , later. Tax unemployed Incidental expenses. Tax unemployed   The term “incidental expenses” means fees and tips given to porters, baggage carriers, hotel staff, and staff on ships. Tax unemployed Incidental expenses do not include expenses for laundry, cleaning and pressing of clothing, lodging taxes, costs of telegrams or telephone calls, transportation between places of lodging or business and places where meals are taken, or the mailing cost of filing travel vouchers and paying employer-sponsored charge card billings. Tax unemployed Incidental expenses only method. Tax unemployed   You can use an optional method (instead of actual cost) for deducting incidental expenses only. Tax unemployed The amount of the deduction is $5 a day. Tax unemployed You can use this method only if you did not pay or incur any meal expenses. Tax unemployed You cannot use this method on any day that you use the standard meal allowance. Tax unemployed    Federal employees should refer to the Federal Travel Regulations at  www. Tax unemployed gsa. Tax unemployed gov. Tax unemployed Find “What GSA Offers” and click on “Regulations: FMR, FTR, & FAR” for Federal Travel Regulation (FTR) for changes affecting claims for reimbursement. Tax unemployed 50% limit may apply. Tax unemployed   If you use the standard meal allowance method for meal expenses and you are not reimbursed or you are reimbursed under a nonaccountable plan, you can generally deduct only 50% of the standard meal allowance. Tax unemployed If you are reimbursed under an accountable plan and you are deducting amounts that are more than your reimbursements, you can deduct only 50% of the excess amount. Tax unemployed The 50% limit is explained later under Entertainment Expenses . Tax unemployed Accountable and nonaccountable plans are discussed later under Reimbursements . Tax unemployed There is no optional standard lodging amount similar to the standard meal allowance. Tax unemployed Your allowable lodging expense deduction is your actual cost. Tax unemployed Who can use the standard meal allowance. Tax unemployed   You can use the standard meal allowance whether you are an employee or self-employed, and whether or not you are reimbursed for your traveling expenses. Tax unemployed   Use of the standard meal allowance for other travel. Tax unemployed    You can use the standard meal allowance to figure your meal expenses when you travel in connection with investment and other income-producing property. Tax unemployed You can also use it to figure your meal expenses when you travel for qualifying educational purposes. Tax unemployed You cannot use the standard meal allowance to figure the cost of your meals when you travel for medical or charitable purposes. Tax unemployed Amount of standard meal allowance. Tax unemployed   The standard meal allowance is the federal M&IE rate. Tax unemployed For travel in 2013, the daily rate for most small localities in the United States is $46. Tax unemployed   Most major cities and many other localities in the United States are designated as high-cost areas, qualifying for higher standard meal allowances. Tax unemployed You can find this information (organized by state) on the Internet at www. Tax unemployed gsa. Tax unemployed gov. Tax unemployed Click on “Per Diem Rates,” then select “2013” for the period January 1, 2013 – September 30, 2013, and select “2014” for the period October 1, 2013 – December 31, 2013. Tax unemployed However, you can apply the rates in effect before October 1, 2013, for expenses of all travel within the United States for 2013 instead of the updated rates. Tax unemployed You must consistently use either the rates for the first 9 months for all of 2013 or the updated rates for the period of October 1, 2013, through December 31, 2013. Tax unemployed   If you travel to more than one location in one day, use the rate in effect for the area where you stop for sleep or rest. Tax unemployed If you work in the transportation industry, however, see Special rate for transportation workers , later. Tax unemployed Standard meal allowance for areas outside the continental United States. Tax unemployed    The standard meal allowance rates above do not apply to travel in Alaska, Hawaii, or any other location outside the continental United States. Tax unemployed The Department of Defense establishes per diem rates for Alaska, Hawaii, Puerto Rico, American Samoa, Guam, Midway, the Northern Mariana Islands, the U. Tax unemployed S. Tax unemployed Virgin Islands, Wake Island, and other non-foreign areas outside the continental United States. Tax unemployed The Department of State establishes per diem rates for all other foreign areas. Tax unemployed    You can access per diem rates for non-foreign areas outside the continental United States at: www. Tax unemployed defensetravel. Tax unemployed dod. Tax unemployed mil/site/perdiemCalc. Tax unemployed cfm. Tax unemployed You can access all other foreign per diem rates at www. Tax unemployed state. Tax unemployed gov/travel/. Tax unemployed Click on “Travel Per Diem Allowances for Foreign Areas” under “Foreign Per Diem Rates,” to obtain the latest foreign per diem rates. Tax unemployed Special rate for transportation workers. Tax unemployed   You can use a special standard meal allowance if you work in the transportation industry. Tax unemployed You are in the transportation industry if your work: Directly involves moving people or goods by airplane, barge, bus, ship, train, or truck, and Regularly requires you to travel away from home and, during any single trip, usually involves travel to areas eligible for different standard meal allowance rates. Tax unemployed If this applies to you, you can claim a standard daily meal allowance of $59 ($65 for travel outside the continental United States). Tax unemployed   Using the special rate for transportation workers eliminates the need for you to determine the standard meal allowance for every area where you stop for sleep or rest. Tax unemployed If you choose to use the special rate for any trip, you must use the special rate (and not use the regular standard meal allowance rates) for all trips you take that year. Tax unemployed Travel for days you depart and return. Tax unemployed   For both the day you depart for and the day you return from a business trip, you must prorate the standard meal allowance (figure a reduced amount for each day). Tax unemployed You can do so by one of two methods. Tax unemployed Method 1: You can claim 3/4 of the standard meal allowance. Tax unemployed Method 2: You can prorate using any method that you consistently apply and that is in accordance with reasonable business practice. Tax unemployed Example. Tax unemployed Jen is employed in New Orleans as a convention planner. Tax unemployed In March, her employer sent her on a 3-day trip to Washington, DC, to attend a planning seminar. Tax unemployed She left her home in New Orleans at 10 a. Tax unemployed m. Tax unemployed on Wednesday and arrived in Washington, DC, at 5:30 p. Tax unemployed m. Tax unemployed After spending two nights there, she flew back to New Orleans on Friday and arrived back home at 8:00 p. Tax unemployed m. Tax unemployed Jen's employer gave her a flat amount to cover her expenses and included it with her wages. Tax unemployed Under Method 1, Jen can claim 2½ days of the standard meal allowance for Washington, DC: 3/4 of the daily rate for Wednesday and Friday (the days she departed and returned), and the full daily rate for Thursday. Tax unemployed Under Method 2, Jen could also use any method that she applies consistently and that is in accordance with reasonable business practice. Tax unemployed For example, she could claim 3 days of the standard meal allowance even though a federal employee would have to use Method 1 and be limited to only 2½ days. Tax unemployed Travel in the United States The following discussion applies to travel in the United States. Tax unemployed For this purpose, the United States includes only the 50 states and the District of Columbia. Tax unemployed The treatment of your travel expenses depends on how much of your trip was business related and on how much of your trip occurred within the United States. Tax unemployed See Part of Trip Outside the United States , later. Tax unemployed Trip Primarily for Business You can deduct all your travel expenses if your trip was entirely business related. Tax unemployed If your trip was primarily for business and, while at your business destination, you extended your stay for a vacation, made a personal side trip, or had other personal activities, you can deduct your business-related travel expenses. Tax unemployed These expenses include the travel costs of getting to and from your business destination and any business-related expenses at your business destination. Tax unemployed Example. Tax unemployed You work in Atlanta and take a business trip to New Orleans in May. Tax unemployed On your way home, you stop in Mobile to visit your parents. Tax unemployed You spend $1,996 for the 9 days you are away from home for travel, meals, lodging, and other travel expenses. Tax unemployed If you had not stopped in Mobile, you would have been gone only 6 days, and your total cost would have been $1,696. Tax unemployed You can deduct $1,696 for your trip, including the cost of round-trip transportation to and from New Orleans. Tax unemployed The deduction for your meals is subject to the 50% limit on meals mentioned earlier. Tax unemployed Trip Primarily for Personal Reasons If your trip was primarily for personal reasons, such as a vacation, the entire cost of the trip is a nondeductible personal expense. Tax unemployed However, you can deduct any expenses you have while at your destination that are directly related to your business. Tax unemployed A trip to a resort or on a cruise ship may be a vacation even if the promoter advertises that it is primarily for business. Tax unemployed The scheduling of incidental business activities during a trip, such as viewing videotapes or attending lectures dealing with general subjects, will not change what is really a vacation into a business trip. Tax unemployed Part of Trip Outside the United States If part of your trip is outside the United States, use the rules described later under Travel Outside the United States for that part of the trip. Tax unemployed For the part of your trip that is inside the United States, use the rules for travel in the United States. Tax unemployed Travel outside the United States does not include travel from one point in the United States to another point in the United States. Tax unemployed The following discussion can help you determine whether your trip was entirely within the United States. Tax unemployed Public transportation. Tax unemployed   If you travel by public transportation, any place in the United States where that vehicle makes a scheduled stop is a point in the United States. Tax unemployed Once the vehicle leaves the last scheduled stop in the United States on its way to a point outside the United States, you apply the rules under Travel Outside the United States . Tax unemployed Example. Tax unemployed You fly from New York to Puerto Rico with a scheduled stop in Miami. Tax unemployed You return to New York nonstop. Tax unemployed The flight from New York to Miami is in the United States, so only the flight from Miami to Puerto Rico is outside the United States. Tax unemployed Because there are no scheduled stops between Puerto Rico and New York, all of the return trip is outside the United States. Tax unemployed Private car. Tax unemployed   Travel by private car in the United States is travel between points in the United States, even when you are on your way to a destination outside the United States. Tax unemployed Example. Tax unemployed You travel by car from Denver to Mexico City and return. Tax unemployed Your travel from Denver to the border and from the border back to Denver is travel in the United States, and the rules in this section apply. Tax unemployed The rules under Travel Outside the United States apply to your trip from the border to Mexico City and back to the border. Tax unemployed Travel Outside the United States If any part of your business travel is outside the United States, some of your deductions for the cost of getting to and from your destination may be limited. Tax unemployed For this purpose, the United States includes only the 50 states and the District of Columbia. Tax unemployed How much of your travel expenses you can deduct depends in part upon how much of your trip outside the United States was business related. Tax unemployed See chapter 1 of Publication 463 for information on luxury water travel. Tax unemployed Travel Entirely for Business or Considered Entirely for Business You can deduct all your travel expenses of getting to and from your business destination if your trip is entirely for business or considered entirely for business. Tax unemployed Travel entirely for business. Tax unemployed   If you travel outside the United States and you spend the entire time on business activities, you can deduct all of your travel expenses. Tax unemployed Travel considered entirely for business. Tax unemployed   Even if you did not spend your entire time on business activities, your trip is considered entirely for business if you meet at least one of the following four exceptions. Tax unemployed Exception 1 - No substantial control. Tax unemployed   Your trip is considered entirely for business if you did not have substantial control over arranging the trip. Tax unemployed The fact that you control the timing of your trip does not, by itself, mean that you have substantial control over arranging your trip. Tax unemployed   You do not have substantial control over your trip if you: Are an employee who was reimbursed or paid a travel expense allowance, Are not related to your employer, and Are not a managing executive. Tax unemployed    “Related to your employer” is defined later in this chapter under Per Diem and Car Allowances . Tax unemployed   A “managing executive” is an employee who has the authority and responsibility, without being subject to the veto of another, to decide on the need for the business travel. Tax unemployed    A self-employed person generally has substantial control over arranging business trips. Tax unemployed Exception 2 - Outside United States no more than a week. Tax unemployed   Your trip is considered entirely for business if you were outside the United States for a week or less, combining business and nonbusiness activities. Tax unemployed One week means 7 consecutive days. Tax unemployed In counting the days, do not count the day you leave the United States, but do count the day you return to the United States. Tax unemployed Exception 3 - Less than 25% of time on personal activities. Tax unemployed   Your trip is considered entirely for business if: You were outside the United States for more than a week, and You spent less than 25% of the total time you were outside the United States on nonbusiness activities. Tax unemployed For this purpose, count both the day your trip began and the day it ended. Tax unemployed Exception 4 - Vacation not a major consideration. Tax unemployed   Your trip is considered entirely for business if you can establish that a personal vacation was not a major consideration, even if you have substantial control over arranging the trip. Tax unemployed Travel Primarily for Business If you travel outside the United States primarily for business but spend some of your time on nonbusiness activities, you generally cannot deduct all of your travel expenses. Tax unemployed You can only deduct the business portion of your cost of getting to and from your destination. Tax unemployed You must allocate the costs between your business and nonbusiness activities to determine your deductible amount. Tax unemployed These travel allocation rules are discussed in chapter 1 of Publication 463. Tax unemployed You do not have to allocate your travel expense deduction if you meet one of the four exceptions listed earlier under Travel considered entirely for business. Tax unemployed In those cases, you can deduct the total cost of getting to and from your destination. Tax unemployed Travel Primarily for Personal Reasons If you travel outside the United States primarily for vacation or for investment purposes, the entire cost of the trip is a nondeductible personal expense. Tax unemployed If you spend some time attending brief professional seminars or a continuing education program, you can deduct your registration fees and other expenses you have that are directly related to your business. Tax unemployed Conventions You can deduct your travel expenses when you attend a convention if you can show that your attendance benefits your trade or business. Tax unemployed You cannot deduct the travel expenses for your family. Tax unemployed If the convention is for investment, political, social, or other purposes unrelated to your trade or business, you cannot deduct the expenses. Tax unemployed Your appointment or election as a delegate does not, in itself, determine whether you can deduct travel expenses. Tax unemployed You can deduct your travel expenses only if your attendance is connected to your own trade or business. Tax unemployed Convention agenda. Tax unemployed   The convention agenda or program generally shows the purpose of the convention. Tax unemployed You can show your attendance at the convention benefits your trade or business by comparing the agenda with the official duties and responsibilities of your position. Tax unemployed The agenda does not have to deal specifically with your official duties and responsibilities; it will be enough if the agenda is so related to your position that it shows your attendance was for business purposes. Tax unemployed Conventions held outside the North American area. Tax unemployed    See chapter 1 of Publication 463 for information on conventions held outside the North American area. Tax unemployed Entertainment Expenses You may be able to deduct business-related entertainment expenses you have for entertaining a client, customer, or employee. Tax unemployed You can deduct entertainment expenses only if they are both ordinary and necessary (defined earlier in the Introduction ) and meet one of the following tests. Tax unemployed Directly-related test. Tax unemployed Associated test. Tax unemployed Both of these tests are explained in chapter 2 of Publication 463. Tax unemployed The amount you can deduct for entertainment expenses may be limited. Tax unemployed Generally, you can deduct only 50% of your unreimbursed entertainment expenses. Tax unemployed This limit is discussed next. Tax unemployed 50% Limit In general, you can deduct only 50% of your business-related meal and entertainment expenses. Tax unemployed (If you are subject to the Department of Transportation's “hours of service” limits, you can deduct 80% of your business-related meal and entertainment expenses. Tax unemployed See Individuals subject to “hours of service” limits , later. Tax unemployed ) The 50% limit applies to employees or their employers, and to self-employed persons (including independent contractors) or their clients, depending on whether the expenses are reimbursed. Tax unemployed Figure 26-A summarizes the general rules explained in this section. Tax unemployed The 50% limit applies to business meals or entertainment expenses you have while: Traveling away from home (whether eating alone or with others) on business, Entertaining customers at your place of business, a restaurant, or other location, or Attending a business convention or reception, business meeting, or business luncheon at a club. Tax unemployed Included expenses. Tax unemployed   Expenses subject to the 50% limit include: Taxes and tips relating to a business meal or entertainment activity, Cover charges for admission to a nightclub, Rent paid for a room in which you hold a dinner or cocktail party, and Amounts paid for parking at a sports arena. Tax unemployed However, the cost of transportation to and from a business meal or a business-related entertainment activity is not subject to the 50% limit. Tax unemployed Application of 50% limit. Tax unemployed   The 50% limit on meal and entertainment expenses applies if the expense is otherwise deductible and is not covered by one of the exceptions discussed later in this section. Tax unemployed   The 50% limit also applies to certain meal and entertainment expenses that are not business related. Tax unemployed It applies to meal and entertainment expenses incurred for the production of income, including rental or royalty income. Tax unemployed It also applies to the cost of meals included in deductible educational expenses. Tax unemployed When to apply the 50% limit. Tax unemployed   You apply the 50% limit after determining the amount that would otherwise qualify for a deduction. Tax unemployed You first have to determine the amount of meal and entertainment expenses that would be deductible under the other rules discussed in this chapter. Tax unemployed Example 1. Tax unemployed You spend $200 for a business-related meal. Tax unemployed If $110 of that amount is not allowable because it is lavish and extravagant, the remaining $90 is subject to the 50% limit. Tax unemployed Your deduction cannot be more than $45 (. Tax unemployed 50 × $90). Tax unemployed Example 2. Tax unemployed You purchase two tickets to a concert and give them to a client. Tax unemployed You purchased the tickets through a ticket agent. Tax unemployed You paid $200 for the two tickets, which had a face value of $80 each ($160 total). Tax unemployed Your deduction cannot be more than $80 (. Tax unemployed 50 × $160). Tax unemployed Exceptions to the 50% Limit Generally, business-related meal and entertainment expenses are subject to the 50% limit. Tax unemployed Figure 26-A can help you determine if the 50% limit applies to you. Tax unemployed Your meal or entertainment expense is not subject to the 50% limit if the expense meets one of the following exceptions. Tax unemployed Employee's reimbursed expenses. Tax unemployed   If you are an employee, you are not subject to the 50% limit on expenses for which your employer reimburses you under an accountable plan. Tax unemployed Accountable plans are discussed later under Reimbursements . Tax unemployed Individuals subject to “hours of service” limits. Tax unemployed   You can deduct a higher percentage of your meal expenses while traveling away from your tax home if the meals take place during or incident to any period subject to the Department of Transportation's “hours of service” limits. Tax unemployed The percentage is 80%. Tax unemployed   Individuals subject to the Department of Transportation's “hours of service” limits include the following persons. Tax unemployed Certain air transportation workers (such as pilots, crew, dispatchers, mechanics, and control tower operators) who are under Federal Aviation Administration regulations. Tax unemployed Interstate truck operators and bus drivers who are under Department of Transportation regulations. Tax unemployed Certain railroad employees (such as engineers, conductors, train crews, dispatchers, and control operations personnel) who are under Federal Railroad Administration regulations. Tax unemployed Certain merchant mariners who are under Coast Guard regulations. Tax unemployed Other exceptions. Tax unemployed   There are also exceptions for the self-employed, advertising expenses, selling meals or entertainment, and charitable sports events. Tax unemployed These are discussed in Publication 463. Tax unemployed Figure 26-A. Tax unemployed Does the 50% Limit Apply to Your Expenses? There are exceptions to these rules. Tax unemployed See Exceptions to the 50% Limit . Tax unemployed Please click here for the text description of the image. Tax unemployed Entertainment expenses: 50% limit What Entertainment Expenses Are Deductible? This section explains different types of entertainment expenses you may be able to deduct. Tax unemployed Entertainment. Tax unemployed    Entertainment includes any activity generally considered to provide entertainment, amusement, or recreation. Tax unemployed Examples include entertaining guests at nightclubs; at social, athletic, and sporting clubs; at theaters; at sporting events; or on hunting, fishing, vacation, and similar trips. Tax unemployed A meal as a form of entertainment. Tax unemployed   Entertainment includes the cost of a meal you provide to a customer or client, whether the meal is a part of other entertainment or by itself. Tax unemployed A meal expense includes the cost of food, beverages, taxes, and tips for the meal. Tax unemployed To deduct an entertainment-related meal, you or your employee must be present when the food or beverages are provided. Tax unemployed You cannot claim the cost of your meal both as an entertainment expense and as a travel expense. Tax unemployed Separating costs. Tax unemployed   If you have one expense that includes the costs of entertainment and other services (such as lodging or transportation), you must allocate that expense between the cost of entertainment and the cost of other services. Tax unemployed You must have a reasonable basis for making this allocation. Tax unemployed For example, you must allocate your expenses if a hotel includes entertainment in its lounge on the same bill with your room charge. Tax unemployed Taking turns paying for meals or entertainment. Tax unemployed   If a group of business acquaintances take turns picking up each others' meal or entertainment checks without regard to whether any business purposes are served, no member of the group can deduct any part of the expense. Tax unemployed Lavish or extravagant expenses. Tax unemployed   You cannot deduct expenses for entertainment that are lavish or extravagant. Tax unemployed An expense is not considered lavish or extravagant if it is reasonable considering the facts and circumstances. Tax unemployed Expenses will not be disallowed just because they are more than a fixed dollar amount or take place at deluxe restaurants, hotels, nightclubs, or resorts. Tax unemployed Trade association meetings. Tax unemployed    You can deduct entertainment expenses that are directly related to, and necessary for, attending business meetings or conventions of certain exempt organizations if the expenses of your attendance are related to your active trade or business. Tax unemployed These organizations include business leagues, chambers of commerce, real estate boards, trade associations, and professional associations. Tax unemployed Entertainment tickets. Tax unemployed   Generally, you cannot deduct more than the face value of an entertainment ticket, even if you paid a higher price. Tax unemployed For example, you cannot deduct service fees you pay to ticket agencies or brokers or any amount over the face value of the tickets you pay to scalpers. Tax unemployed What Entertainment Expenses Are Not Deductible? This section explains different types of entertainment expenses you generally may not be able to deduct. Tax unemployed Club dues and membership fees. Tax unemployed   You cannot deduct dues (including initiation fees) for membership in any club organized for: Business, Pleasure, Recreation, or Other social purpose. Tax unemployed This rule applies to any membership organization if one of its principal purposes is either: To conduct entertainment activities for members or their guests, or To provide members or their guests with access to entertainment facilities. Tax unemployed   The purposes and activities of a club, not its name, will determine whether or not you can deduct the dues. Tax unemployed You cannot deduct dues paid to: Country clubs, Golf and athletic clubs, Airline clubs, Hotel clubs, and Clubs operated to provide meals under circumstances generally considered to be conducive to business discussions. Tax unemployed Entertainment facilities. Tax unemployed   Generally, you cannot deduct any expense for the use of an entertainment facility. Tax unemployed This includes expenses for depreciation and operating costs such as rent, utilities, maintenance, and protection. Tax unemployed   An entertainment facility is any property you own, rent, or use for entertainment. Tax unemployed Examples include a yacht, hunting lodge, fishing camp, swimming pool, tennis court, bowling alley, car, airplane, apartment, hotel suite, or home in a vacation resort. Tax unemployed Out-of-pocket expenses. Tax unemployed   You can deduct out-of-pocket expenses, such as for food and beverages, catering, gas, and fishing bait, that you provided during entertainment at a facility. Tax unemployed These are not expenses for the use of an entertainment facility. Tax unemployed However, these expenses are subject to the directly-related and associated tests and to the 50% Limit discussed earlier. Tax unemployed Additional information. Tax unemployed   For more information on entertainment expenses, including discussions of the directly-related and associated tests, see chapter 2 of Publication 463. Tax unemployed Gift Expenses If you give gifts in the course of your trade or business, you can deduct all or part of the cost. Tax unemployed This section explains the limits and rules for deducting the costs of gifts. Tax unemployed $25 limit. Tax unemployed   You can deduct no more than $25 for business gifts you give directly or indirectly to each person during your tax year. Tax unemployed A gift to a company that is intended for the eventual personal use or benefit of a particular person or a limited class of people will be considered an indirect gift to that particular person or to the individuals within that class of people who receive the gift. Tax unemployed   If you give a gift to a member of a customer's family, the gift is generally considered to be an indirect gift to the customer. Tax unemployed This rule does not apply if you have a bona fide, independent business connection with that family member and the gift is not intended for the customer's eventual use or benefit. Tax unemployed   If you and your spouse both give gifts, both of you are treated as one taxpayer. Tax unemployed It does not matter whether you have separate businesses, are separately employed, or whether each of you has an independent connection with the recipient. Tax unemployed If a partnership gives gifts, the partnership and the partners are treated as one taxpayer. Tax unemployed Incidental costs. Tax unemployed   Incidental costs, such as engraving on jewelry, or packaging, insuring, and mailing, are generally not included in determining the cost of a gift for purposes of the $25 limit. Tax unemployed   A cost is incidental only if it does not add substantial value to the gift. Tax unemployed For example, the cost of customary gift wrapping is an incidental cost. Tax unemployed However, the purchase of an ornamental basket for packaging fruit is not an incidental cost if the value of the basket is substantial compared to the value of the fruit. Tax unemployed Exceptions. Tax unemployed   The following items are not considered gifts for purposes of the $25 limit. Tax unemployed An item that costs $4 or less and: Has your name clearly and permanently imprinted on the gift, and Is one of a number of identical items you widely distribute. Tax unemployed Examples include pens, desk sets, and plastic bags and cases. Tax unemployed Signs, display racks, or other promotional material to be used on the business premises of the recipient. Tax unemployed Gift or entertainment. Tax unemployed   Any item that might be considered either a gift or entertainment generally will be considered entertainment. Tax unemployed However, if you give a customer packaged food or beverages you intend the customer to use at a later date, treat it as a gift. Tax unemployed    If you give a customer tickets to a theater performance or sporting event and you do not go with the customer to the performance or event, you have a choice. Tax unemployed You can treat the cost of the tickets as either a gift expense or an entertainment expense, whichever is to your advantage. Tax unemployed    If you go with the customer to the event, you must treat the cost of the tickets as an entertainment expense. Tax unemployed You cannot choose, in this case, to treat the cost of the tickets as a gift expense. Tax unemployed Transportation Expenses This section discusses expenses you can deduct for business transportation when you are not traveling away from home as defined earlier under Travel Expenses . Tax unemployed These expenses include the cost of transportation by air, rail, bus, taxi, etc. Tax unemployed , and the cost of driving and maintaining your car. Tax unemployed Transportation expenses include the ordinary and necessary costs of all of the following. Tax unemployed Getting from one workplace to another in the course of your business or profession when you are traveling within the area of your tax home. Tax unemployed (Tax home is defined earlier under Travel Expenses . Tax unemployed ) Visiting clients or customers. Tax unemployed Going to a business meeting away from your regular workplace. Tax unemployed Getting from your home to a temporary workplace when you have one or more regular places of work. Tax unemployed These temporary workplaces can be either within the area of your tax home or outside that area. Tax unemployed Transportation expenses do not include expenses you have while traveling away from home overnight. Tax unemployed Those expenses are travel expenses, discussed earlier. Tax unemployed However, if you use your car while traveling away from home overnight, use the rules in this section to figure your car expense deduction. Tax unemployed See Car Expenses , later. Tax unemployed Illustration of transportation expenses. Tax unemployed    Figure 26-B illustrates the rules for when you can deduct transportation expenses when you have a regular or main job away from your home. Tax unemployed You may want to refer to it when deciding whether you can deduct your transportation expenses. Tax unemployed Daily transportation expenses you incur while traveling from home to one or more regular places of business are generally nondeductible commuting expenses. Tax unemployed However, there are many exceptions for deducting transportation expenses, like whether your work location is temporary (inside or outside the metropolitan area), traveling for same trade or business, or if you have a home office. Tax unemployed Temporary work location. Tax unemployed   If you have one or more regular work locations away from your home and you commute to a temporary work location in the same trade or business, you can deduct the expenses of the daily round-trip transportation between your home and the temporary location, regardless of distance. Tax unemployed   If your employment at a work location is realistically expected to last (and does in fact last) for 1 year or less, the employment is temporary unless there are facts and circumstances that would indicate otherwise. Tax unemployed   If your employment at a work location is realistically expected to last for more than 1 year or if there is no realistic expectation that the employment will last for 1 year or less, the employment is not temporary, regardless of whether it actually lasts for more than 1 year. Tax unemployed   If employment at a work location initially is realistically expected to last for 1 year or less, but at some later date the employment is realistically expected to last more than 1 year, that employment will be treated as temporary (unless there are facts and circumstances that would indicate otherwise) until your expectation changes. Tax unemployed It will not be treated as temporary after the date you determine it will last more than 1 year. Tax unemployed   If the temporary work location is beyond the general area of your regular place of work and you stay overnight, you are traveling away from home. Tax unemployed You may have deductible travel expenses as discussed earlier in this chapter. Tax unemployed No regular place of work. Tax unemployed   If you have no regular place of work but ordinarily work in the metropolitan area where you live, you can deduct daily transportation costs between home and a temporary work site outside that metropolitan area. Tax unemployed   Generally, a metropolitan area includes the area within the city limits and the suburbs that are considered part of that metropolitan area. Tax unemployed   You cannot deduct daily transportation costs between your home and temporary work sites within your metropolitan area. Tax unemployed These are nondeductible commuting expenses. Tax unemployed Two places of work. Tax unemployed   If you work at two places in one day, whether or not for the same employer, you can deduct the expense of getting from one workplace to the other. Tax unemployed However, if for some personal reason you do not go directly from one location to the other, you cannot deduct more than the amount it would have cost you to go directly from the first location to the second. Tax unemployed   Transportation expenses you have in going between home and a part-time job on a day off from your main job are commuting expenses. Tax unemployed You cannot deduct them. Tax unemployed Armed Forces reservists. Tax unemployed   A meeting of an Armed Forces reserve unit is a second place of business if the meeting is held on a day on which you work at your regular job. Tax unemployed You can deduct the expense of getting from one workplace to the other as just discussed under Two places of work , earlier. Tax unemployed   You usually cannot deduct the expense if the reserve meeting is held on a day on which you do not work at your regular job. Tax unemployed In this case, your transportation generally is a nondeductible commuting expense. Tax unemployed However, you can deduct your transportation expenses if the location of the meeting is temporary and you have one or more regular places of work. Tax unemployed   If you ordinarily work in a particular metropolitan area but not at any specific location and the reserve meeting is held at a temporary location outside that metropolitan area, you can deduct your transportation expenses. Tax unemployed   If you travel away from home overnight to attend a guard or reserve meeting, you can deduct your travel expenses. Tax unemployed These expenses are discussed earlier under Travel Expenses . Tax unemployed   If you travel more than 100 miles away from home in connection with your performance of services as a member of the reserves, you may be able to deduct some of your reserve-related travel costs as an adjustment to income rather than as an itemized deduction. Tax unemployed See Armed Forces reservists traveling more than 100 miles from home under Special Rules, later. Tax unemployed Commuting expenses. Tax unemployed   You cannot deduct the costs of taking a bus, trolley, subway, or taxi, or of driving a car between your home and your main or regular place of work. Tax unemployed These costs are personal commuting expenses. Tax unemployed You cannot deduct commuting expenses no matter how far your home is from your regular place of work. Tax unemployed You cannot deduct commuting expenses even if you work during the commuting trip. Tax unemployed Example. Tax unemployed You sometimes use your cell phone to make business calls while commuting to and from work. Tax unemployed Sometimes business associates ride with you to and from work, and you have a business discussion in the car. Tax unemployed These activities do not change the trip from personal to business. Tax unemployed You cannot deduct your commuting expenses. Tax unemployed Parking fees. Tax unemployed   Fees you pay to park your car at your place of business are nondeductible commuting expenses. Tax unemployed You can, however, deduct business-related parking fees when visiting a customer or client. Tax unemployed Advertising display on car. Tax unemployed   Putting display material that advertises your business on your car does not change the use of your car from personal use to business use. Tax unemployed If you use this car for commuting or other personal uses, you still cannot deduct your expenses for those uses. Tax unemployed Car pools. Tax unemployed   You cannot deduct the cost of using your car in a nonprofit car pool. Tax unemployed Do not include payments you receive from the passengers in your income. Tax unemployed These payments are considered reimbursements of your expenses. Tax unemployed However, if you operate a car pool for a profit, you must include payments from passengers in your income. Tax unemployed You can then deduct your car expenses (using the rules in this chapter). Tax unemployed Hauling tools or instruments. Tax unemployed   Hauling tools or instruments in your car while commuting to and from work does not make your car expenses deductible. Tax unemployed However, you can deduct any additional costs you have for hauling tools or instruments (such as for renting a trailer you tow with your car). Tax unemployed Union members' trips from a union hall. Tax unemployed   If you get your work assignments at a union hall and then go to your place of work, the costs of getting from the union hall to your place of work are nondeductible commuting expenses. Tax unemployed Although you need the union to get your work assignments, you are employed where you work, not where the union hall is located. Tax unemployed Office in the home. Tax unemployed   If you have an office in your home that qualifies as a principal place of business, you can deduct your daily transportation costs between your home and another work location in the same trade or business. Tax unemployed (See chapter 28 for information on determining if your home office qualifies as a principal place of business. Tax unemployed ) Figure 26-B. Tax unemployed When Are Transportation Expenses Deductible? Most employees and self-employed persons can use this chart. Tax unemployed (Do not use this chart if your home is your principal place of business. Tax unemployed See Office in the home . Tax unemployed ) Please click here for the text description of the image. Tax unemployed Figure 26-B. Tax unemployed Local Transportation Examples of deductible transportation. Tax unemployed   The following examples show when you can deduct transportation expenses based on the location of your work and your home. Tax unemployed Example 1. Tax unemployed You regularly work in an office in the city where you live. Tax unemployed Your employer sends you to a 1-week training session at a different office in the same city. Tax unemployed You travel directly from your home to the training location and return each day. Tax unemployed You can deduct the cost of your daily round-trip transportation between your home and the training location. Tax unemployed Example 2. Tax unemployed Your principal place of business is in your home. Tax unemployed You can deduct the cost of round-trip transportation between your qualifying home office and your client's or customer's place of business. Tax unemployed Example 3. Tax unemployed You have no regular office, and you do not have an office in your home. Tax unemployed In this case, the location of your first business contact inside the metropolitan area is considered your office. Tax unemployed Transportation expenses between your home and this first contact are nondeductible commuting expenses. Tax unemployed Transportation expenses between your last business contact and your home are also nondeductible commuting expenses. Tax unemployed While you cannot deduct the costs of these first and last trips, you can deduct the costs of going from one client or customer to another. Tax unemployed With no regular or home office, the costs of travel between two or more business contacts in a metropolitan area are deductible while the costs of travel between the home to (and from) business contacts are not deductible. Tax unemployed Car Expenses If you use your car for business purposes, you may be able to deduct car expenses. Tax unemployed You generally can use one of the two following methods to figure your deductible expenses. Tax unemployed Standard mileage rate. Tax unemployed Actual car expenses. Tax unemployed If you use actual car expenses to figure your deduction for a car you lease, there are rules that affect the amount of your lease payments you can deduct. Tax unemployed See Leasing a car under Actual Car Expenses, later. Tax unemployed In this chapter, “car” includes a van, pickup, or panel truck. Tax unemployed Rural mail carriers. Tax unemployed   If you are a rural mail carrier, you may be able to treat the amount of qualified reimbursement you received as the amount of your allowable expense. Tax unemployed Because the qualified reimbursement is treated as paid under an accountable plan, your employer should not include the amount of reimbursement in your income. Tax unemployed   If your vehicle expenses are more than the amount of your reimbursement, you can deduct the unreimbursed expenses as an itemized deduction on Schedule A (Form 1040). Tax unemployed You must complete Form 2106 and attach it to your Form 1040. Tax unemployed   A “qualified reimbursement” is the reimbursement you receive that meets both of the following conditions. Tax unemployed It is given as an equipment maintenance allowance (EMA) to employees of the U. Tax unemployed S. Tax unemployed Postal Service. Tax unemployed It is at the rate contained in the 1991 collective bargaining agreement. Tax unemployed Any later agreement cannot increase the qualified reimbursement amount by more than the rate of inflation. Tax unemployed See your employer for information on your reimbursement. Tax unemployed If you are a rural mail carrier and received a qualified reimbursement, you cannot use the standard mileage rate. Tax unemployed Standard Mileage Rate You may be able to use the standard mileage rate to figure the deductible costs of operating your car for business purposes. Tax unemployed For 2013, the standard mileage rate for business use is 56½ cents per mile. Tax unemployed If you use the standard mileage rate for a year, you cannot deduct your actual car expenses for that year, but see Parking fees and tolls, later. Tax unemployed You generally can use the standard mileage rate whether or not you are reimbursed and whether or not any reimbursement is more or less than the amount figured using the standard mileage rate. Tax unemployed See Reimbursements under How To Report, later. Tax unemployed Choosing the standard mileage rate. Tax unemployed   If you want to use the standard mileage rate for a car you own, you must choose to use it in the first year the car is available for use in your business. Tax unemployed Then in later years, you can choose to use either the standard mileage rate or actual expenses. Tax unemployed   If you want to use the standard mileage rate for a car you lease, you must use it for the entire lease period. Tax unemployed   You must make the choice to use the standard mileage rate by the due date (including extensions) of your return. Tax unemployed You cannot revoke the choice. Tax unemployed However, in a later year, you can switch from the standard mileage rate to the actual expenses method. Tax unemployed If you change to the actual expenses method in a later year, but before your car is fully depreciated, you have to estimate the remaining useful life of the car and use straight line depreciation. Tax unemployed Example. Tax unemployed Larry is an employee who occasionally uses his own car for business purposes. Tax unemployed He purchased the car in 2011, but he did not claim any unreimburse