Tax deductions for commuters

[Freight Dog]

Are there any tax benefits for commuters aside from living in a no-income-tax state? For example, are crashpads tax deductible, or rental cars or even cars at your domicile?

Just curious...

 

[warbirdfinder]

Having gone through several audits over the past 30 years, commuting expenses are not deductible. If you had a business in the city/state where you live, then there are many expenses that are deductible when commuting to your airline job.

 

[737tanker]

If you are temporarily based (for no more than 1 year) at a domicile then your expenses are deductible. So if you are forced to move from one domicle to another you can deduct your commuting expenses until you get back to your main domicle.

 

[Alcatraz]

I'll second the temporary (less than 1 year) suggestion. Actual housing/lodging costs, as well as a standard meal allowance, are tax deductible if you do not plan on spending more than 12 months at that location. I'm pretty sure this applies even if you voluntarily bid a different base for a short period.

For periods over one year, ALL commuting expenses, including crashpad expenses, train/plane tickets, etc., are just "commuting expenses" to your primary job and are NEVER tax deductible.

Disclaimer: I am NOT a certified tax advisor or tax preparer! For more information, go to www.irs.gov and search for info on temporary work locations, travel expenses, and per diem rates.

 

[10-key]

I am a CPA and have done tax work for crewmembers for many years and all of the above is correct.

 

[rdy4to]

What about these same expenses e.g. crash pad, meals, transportation while you are in training? Are they tax deductible then?

 

[BuzzSaw]

Heh Alcatraz or anybody,

"For periods over one year, ALL commuting expenses, including crashpad expenses, train/plane tickets, etc., are just "commuting expenses" to your primary job and are NEVER tax deductible."

How is a primary job defined?? Most time at work or amount of income earned??

Note: I fly at a regional and I am also in the reserves. I make more money at my reserve job than I do at my airline job...

thanks,

BuzzSaw

 

[10-key]

In My opinion, if you are domiciled in the same place as where your training takes place then you cannot deduct for crash pad, hotel or meals while in training. You can still deduct mileage to and from the training facility though. For example: If you are based in CLT and you have training in CLT you can only deduct the expenses for study supplies and mileage to and from the training facilityand your normal crash pad or hotel.
If your training is outside your domicile then everything is deductible. However you cannot deduct anything the company pays for directly such as direct billed hotels.

BuzzSaw,
I believe that reserve duty is never considered your primary job unless you are full time reserve. Therefore all expenses for travelling to and from your reserve assignments including meals lodging airfare mileage etc are deductible.

For everyone, you do not need to keep receipts for meals you can use the federal per diem rates established by the DOT. But you always have to have copies of your hotels bills.

If there are any more questions etc. feel free to post.

 

[GoABX]

10-Key & Warbird,

Owning a business seems to make sense regarding deductibility as it ties you to a location and forces a commute. In other cases place of residence is a choice.

Besides being a pilot, I'm a realtor and a national real estate consultant. I would consider the flying to be my primary job. Would this make commuting deductible in my case?

I strongly encourage every pilot and high income person to start some sort of business; it's the only way to mitigate the damage on taxes. Pick something you truly enjoy. If possible convert an interest ("hobby" is an IRS bad word) into a real business; something that makes a little money anyway.

In my case I have given free real estate assistance nationwide for over 10 years. One of my specialities is waterfront. It's nice when the business subsidizes a Grady White, a skiff, part of the mortgage, gas, office supplies, cameras, computers, food & booze for client BBQs and dinner parties, etc. I have a lot friends and family that happen to be clients. Hmmmm.

 

[BuzzSaw]

Thanks for the info...

BuzzSaw