I was recently hired as an ultrasound tech at a hospital in Illinois and have a 60 mile round trip commute. I am also the sole proprietor of a Christmas tree farm that is located at my home. I work on the farm before and after my commute. I am seeking advice on whether my mileage would be tax deductible if I handed out business cards while at my day job and/or hung up fliers around town?

thanks,
Dan

#1: As an EE, you cannot deduct commuting expenses for travel between your home and your regular work place, the hospital, no matter how far away from your home it is located. Commuting to and from work is not considered business-related by the U.S. IRS and is not deductible. You may deduct commuting expenses to a temporary job location outside of the area where you live and work.


#2: Being self-employed has its advantages. Unlike a regular employee, the IRS allows self-employed individuals to deduct commuting expenses. To qualify, you must be self-employed and have at least two business locations. Any miles driven between two or more business locations are deductible business miles. If your home office qualifies for a deduction, then your transportation expenses are deductible regardless of whether your other work location is regular or temporary. when you work for yourself, you are able to take deductions on your tax returns for all business-related transportation costs. You can, however, take a deduction for your commuting expenses if you are self-employed and your home serves as one of your offices. You can legally deduct your commuting costs to and from work if you meet two basic criteria. You must be self-employed and you must have at least two offices -- one of them being your home. The cost of travel between offices is considered a business-related cost by the IRS. To qualify, your home office must be your principle place of business. This means that your home must be used exclusively and regularly for business-related activities, such as making management decisions and performing administrative work when you are there. Remember, you need to keep your receipts for any fares you pay in case you are audited.