Temporary Job Expenses - Returning home on the weekend deductible?

[BulldogTom]

I am having a brain cramp.   This is for state only.   CA never conformed to the TJCA provisions for eliminating employee business expenses.   Client took a temporary job (4 months, paid on a W2) in another city.   Too far to commute daily so he stayed in a hotel Sun-Thur every week and then drove home Friday, returning on Sunday.   200 miles each way on the weekend.   Is all this mileage deductible, or does he only get one trip there and one trip back.   

Thanks in advance.

Tom
Modesto, CA

[Lee B]

So is this an assignment related to a current ongoing job, or is it a new job that's  4 months long ?

The IRS when it defines temporary with respect to a job, it means for an indefinite unknown period of time .

[joanmcq]

Also less than a year outside of your 'normal commute area'.

[Possi]

Since it's not a "temporary location" but a temporary job, that's not deductible. His new job location is his new tax home. 

"Generally, your tax home is the entire city or general area where your main place of business or work is located, regardless of where you maintain your family home. For example, you live with your family in Chicago but work in Milwaukee where you stay in a hotel and eat in restaurants. You return to Chicago every weekend. You may not deduct any of your travel, meals or lodging in Milwaukee because that's your tax home. Your travel on weekends to your family home in Chicago isn't for your work, so these expenses are also not deductible. If you regularly work in more than one place, your tax home is the general area where your main place of business or work is located."

If OTOH, his regular job where he normally works, sends him to a temporary location, you might have a deduction, provided other criteria are met.

[DANRVAN]

It is deductible if he expected the job to last less than one year and his expectation was to return home after the job had ended.  There is plenty of case law to support this.

[Lee B]

What we have here is "a lof ifs and not enough facts"

[DANRVAN]

16 hours ago, cbslee said:

The IRS when it defines temporary with respect to a job, it means for an indefinite unknown period of time .

HOLDING Under section 162 (a) (2) of the Code, as amended by the Energy Policy Act of 1992, if employment away from home in a single location is realistically expected to last (and does in fact last) for 1 year or less, the employment is temporary in the absence of facts and circumstances indicating otherwise.

per Revenue Ruling 93-86

[DANRVAN]

3 hours ago, Possi said:

For example, you live with your family in Chicago but work in Milwaukee where you stay in a hotel and eat in restaurants.

Your post does not tell how long the job in Milwaukee was expected to last, or did in fact last.  Also whether he expected to return to Chicago  for employment after the Milwaukee  job ended.

[Possi]

11 minutes ago, DANRVAN said:

Your post does not tell how long the job in Milwaukee was expected to last, or did in fact last.  Also whether he expected to return to Chicago  for employment after the Milwaukee  job ended.

His tax home moves with his job, in this case. It's his new job, expected to last 4 months. So, it's not a temporary location for his present job. It is his new job. 

"Generally, your tax home is the entire city or general area where your main place of business or work is located, regardless of where you maintain your family home." 

In this case, although temporary, it has become his main place of business since it is his choice to take a new job away from home, and it is his only job. 

Right??  

[DANRVAN]

3 minutes ago, Possi said:

n this case, although temporary, it has become his main place of business since it is his choice to take a new job away from home, and it is his only job. 

Right??

Not in the case Tom presented.  Your tax home does not change when the job meets the IRS definition of temporary.

[DANRVAN]

7 minutes ago, Possi said:

expected to last 4 months. So, it's not a temporary location for his present job. It is his new job. 

It is temporary if expected to last less than one year and does in fact last than one year, per Revenue Ruling 93-86

[Possi]

51 minutes ago, DANRVAN said:

It is temporary if expected to last less than one year and does in fact last than one year, per Revenue Ruling 93-86

Well, that is correct, and is not in question. 

The question is, where is his tax home? That is the first thing to be determined. As his only job, temp or not, that became his tax home. Isn't that right? His only job? His source of income? His tax home? That's the very top of the IRS discussion. 

[Lee B]

If it's new job known to last 4 months when he was hired, I think he dead in the water.

[DANRVAN]

4 minutes ago, Possi said:

As his only job, temp or not, that became his tax home.

Not correct, how do you support that position?

 

2 minutes ago, cbslee said:

If it's new job known to last 4 months when he was hired, I think he dead in the water.

Not at all, it is temporary vs. indefinite since he took the job knowing it was going to last 4 months.

If on the other hand he had taken the job not knowing if it was going to last for over a year, it would be indefinite instead of temporary.

There is lots of case law to back this up.

[DANRVAN]

Revenue Ruling 83-82, 1983-1 C.B. 45, provides that, for purposes of the deduction for travel expenses under section 162 (a) (2) of the Code, if the taxpayer anticipates employment away from home to last less than 1 year, then all the facts and circumstances are considered to determine whether such employment is temporary. If the taxpayer anticipates employment to last (and it does in fact last) between 1 and 2 years, Rev. Rul. 83-82, 1983-1 C.B. 45 provides a rebuttable presumption that the employment is indefinite

[BulldogTom]

Thanks for the lively discussion.   I am taking the position that the tax home did not change, and therefore this is temporary work.   

But I still have the same question from the OP, (based on the presumed fact that this is a temporary work location),  is the weekend travel from the temp location to home and back again a deductible expense?

Thanks.  I really do appreciate this feedback.

Tom
Modesto, CA

[DANRVAN]

5 minutes ago, BulldogTom said:

is the weekend travel from the temp location to home and back again a deductible expense?

Yes, that is clearly supported by Revenue Ruling 93-86 and case law.

[Possi]

Boom! There it is! 

Great discussion! Thanks! 

[Possi]

4 hours ago, DANRVAN said:

Your post does not tell how long the job in Milwaukee was expected to last, or did in fact last.  Also whether he expected to return to Chicago  for employment after the Milwaukee  job ended.

By the way, I was quoting the IRS. I didn't make up that scenario. Just clarifying. 

The same IRS site indicated that if it was a new job, the site of the source of income became his tax home. 

I was just interpreting it as I read it. That's all. 

This site:

https://www.irs.gov/taxtopics/tc511#:~:text=You can deduct travel expenses,one year is considered indefinite.

I've learned that I'm always learning, and you schooled me. It's good. 

 

[DANRVAN]

1 hour ago, Possi said:

The same IRS site indicated that if it was a new job, the site of the source of income became his tax home. 

Correct, if it was a new job for an indefinite period.  Sounds like that was the source of confusion.

[Possi]

41 minutes ago, DANRVAN said:

Correct, if it was a new job for an indefinite period.  Sounds like that was the source of confusion.

Thanks for that clarification, too~~ 

[peggysioux5]

Would hotel and meals also be included in travel expenses while he was working at temporary location?

[Lee B]

Meals would be at 50% or the per diem rates. Lodging at reasonable not extravagant cost.