Tax Deductions

[1900laker]

I have a question for some Tax saavy people?

Isn't it true that if you have a second business on the side that is not co-located with your first job/business, that the IRS will allow you to deduct travel expenses, etc. involved with the second business. I think it was explained to me one time that the IRS will consider one place or the other your primary Tax home, and usually that is the place where you are based as an airline pilot as long as that is your highest source of income.

For example Joe Schmoe is an airline pilot and has a dry-cleaning business on the side. Joe lives in Washington D.C. but commutes to Detroit where he is based at his airline. His drycleaning business in back in D.C.. Joe makes more working at the airline. Can Joe deduct travel/commuting expenses for his business back in D.C. since he can not deduct travel/crashpad/hotel expenses while he is in his tax home of Detroit?

Also, are the military reserves considered another job or business that you could conceivably deduct things like mileage to drive to your duty station?

Thanks

 

[ualORD]

The 2% question. Let's say, your total deduction on sch.A is $10,000. Your AGI is $50,000 .... 2% is $1,000. Subtract that from your $10,000. That gives you a $9,000 deduction.

 

[Stickshaker]

Saabtrash

That was to funny!
Thanks for the laugh.

 

[NR133]

Here is the standard meal allowance rule, from IRS-Publication 463,page 6:
Special rate for transportation workers: You can use a special standard rate meal allowance if you work in the transportation industry.....If this applies to you, you can claim a $38 a day standard meal allowance ($42 for travel outside the US). 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. If you choose to use the special rate for any trip, you must use the speacial rate (and not use the regular standard meal allowance rates) for all trips you take that year.