Transportation Expenses

Transportation expenses are the direct cost of travelling to conduct business. The cost of maintaining a car for business use, or transport by bus, rail, air, taxi, or other means for business purposes may be deducted as transportation expenses. Transportation expenses are distinct from travel expenses in that the latter entails travelling away from home overnight. Usually, transportation expenses are incurred while traveling within the area of one’s tax home. The cost of transiting from one business location to another, the cost of visiting customers or clients, and the cost of attending business meetings outside one’s regular workplace are all transportation expenses. Transportation expenses can also include the cost of travelling from home to a temporary workplace under certain circumstances. Note that in this case, the travelling area is not restricted to the taxpayer’s tax home. First, if travellers have one or more regular work location away from home and the temporary location is in the same trade or business, it counts as transportation expenses. Second, travellers who have no regular workplace but generally work within the same metropolitan area where they live can claim transportation expenses for travel to a worksite outside the metropolitan area. Transportation expenses are distinct from commuting expenses, or the cost of transiting from home to a regular place of work. Unlike transportation expenses, commuting expenses are not deductible.

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