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Old 12-08-2014, 08:49 AM
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Per Diem Question

I manage facility construction projects for a nation wide processing company, When working out of my home state I claim Hi/Low per-deim. I now for the first time am working on a project in my home state, and near the corporate offices of the company I work for, the location however is still 4 hours from my home so I do need to travel, rent lodging, etc.
Can I/my employer, use/claim the hi low per-diem? Is the rule governing per-diem based on location of work in relation to Employers offices or my home address? Or is there some middle ground in this unique situation, i.e. I travel for all my work, this job just happens to be near corp. office. So far I've found nothing on the IRS website that addresses this.

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Old 12-08-2014, 11:56 AM
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I manage facility construction projects for a nation wide processing company, When working out of my home state I claim Hi/Low per-deim. I now for the first time am working on a project in my home state, and near the corporate offices of the company I work for, the location however is still 4 hours from my home so I do need to travel, rent lodging, etc. ====>>> The IRS allows businesses to deduct expenses for business travel by owners and employees, but no deductions are allowed for commuting expenses. The rationale is that everyone commutes ,travels to work, so commuting is not a business but a personal expense. The distance between your home and your place of work near the corp office is your commute, and the time, 4 hrs, you spend driving between home and work, no matter how far, is your commuting distance so,the transportation cost for getting from your home to your regular place of work and back home again, whether by train, bus, underground train, taxi, or by driving your own car, are personal commuting expenses and are not deductible. On the other hand, expenses for business travel are a business expense and therefore are deductible.






Can I/my employer, use/claim the hi low per-diem? Is the rule governing per-diem based on location of work in relation to Employers offices or my home address? Or is there some middle ground in this unique situation, i.e. I travel for all my work, this job just happens to be near corp. office. So far I've found nothing on the IRS website that addresses this.=>>As mentioned above; The IRS does not generally allow deductions for commuting expenses as you need to get to work, employees and business owners alike, so this expense is not part of your business.fo example, there was a self-employed individual traveling each day from home to temporary work sites up to 96 miles away, and back home each night. That's a long commute, but it's still commuting, not traveling and no deductible.on the contrary your biz travel is not commuting aslongas your travel is to a temporary work location outside the metropolitan area where you live and normally work and you have at least one regular work location away from your home and your travel is to a temporary work location in the same trade or business, regardless of the distance. Generally, the IRS considers that a temporary work location is one where your employment is expected to last 1 year. So, commuting expenses from your home to work and back are generally not tax deductible expenses. But you may be able to take a deduction for transportation expenses if you have more than one work location, such as a second job; if your work requires you to go to different locations from 1st job/work to 2nd job/work; if you are working at a temporary location .A temporary work location is defined as a place you work, in addition to your regular or main place of work, for a period that is expected to last less than one year. In this case, you can deduct your round-trip transportation expense from your home to the temporary work location, regardless of the distance; or if your home is your principal place of business.



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