2. YOUR TAX HOME
Your “Main Home,”
where you sleep at night,
may not be
considered
your “Tax Home.”
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3. YOUR TAX HOME
Tax Home Definition:
Generally your normal place of business,
where you report for work each day.
IF: You do not have a main work place due to
the nature of your business
THEN: Your tax home is where you regularly live
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4. IF: You commute long
distances for work.
SIGNIFICANCE OF YOUR TAX HOME
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THEN: Commuting expenses
are not tax deductible,
This is true no matter how far your
regular work place is from your home.
This is true even if you work during
your commute.
5. #1: Commute via train from main home
to regular work location.
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6. EVEN IF: While on train, you
make calls, read reports, or
respond to emails...
#1: COMMUTE VIA TRAIN FROM MAIN HOME TO
REGULAR WORK LOCATION
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EVEN IF: You stay in hotel or
apartment several days a
week to be closer to main
work location.
THEN: Cost of the train is a non-
tax deductible commuting expense. THEN: It is still considered a
non-deductible expense
because your long distance
work location is considered
your tax home.
THEN: You cannot deduct the
cost of meals and lodging
while at your tax home.
7. BUT IF: You commute to a TEMPORARY work location, like
a client’s office
THEN: That same train ride becomes deductible.
#1: COMMUTE VIA TRAIN FROM MAIN HOME TO
REGULAR WORK LOCATION
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It is the commute between your main home
and your tax home that is expressly
prohibited as an expense.
8. #2: San Francisco is main home, but take a
permanent job in Los Angeles.
Choose not to move family from San
Francisco to Los Angeles.
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9. IF: You commute to the L.A.
work location each week
and get apartment near
main work location.
THEN: The commuting
expense, cost of meals and
cost of lodging are not
deductible ― even though
you are away from your main
family home.
#2: SF IS MAIN HOME, BUT TAKE A PERMANENT
JOB IN LA. DO NOT MOVE FAMILY FROM SF TO L A.
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Since this is a permanent
job, with a main work
location in Los Angeles ―
Los Angeles is now
considered your tax home.
10. IF: You commute to a
temporary work location
THEN: Your tax home
changes
Temporary work location
is a job or project
expected to last for one
year or less
#2: SF IS MAIN HOME, BUT TAKE A PERMANENT
JOB IN LA. DO NOT MOVE FAMILY FROM SF TO L A.
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IF: Your tax home does
not change
THEN: Main office is
tax home
IF: No main office
THEN: Your tax home
is regular residence
11. #3: Same facts as in example 2, except
that the job in Los Angeles is temporary.
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12. This position is
expected to last only
8 months…
#3: SAME FACTS AS IN EXAMPLE 2, EXCEPT
THAT THE JOB IN LOS ANGELES IS TEMPORARY.
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Since this meets the one year
or less requirement of a
temporary work location, your
tax home is not considered to
have changed to Los Angeles.
13. The commuting expense
from San Francisco to Los
Angeles, and the meals
and lodging, would be tax
deductible.
#3: SAME FACTS AS IN EXAMPLE 2, EXCEPT
THAT THE JOB IN LOS ANGELES IS TEMPORARY.
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14. Speak to your tax professional for guidance
BEFORE YOU TAKE THAT JOB….
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15. S OLUTIONS + P E RSPE CTIVE
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