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Efile free Index A Archer MSAs, Archer MSAs, Employment taxes. Efile free Assistance (see Tax help) C Contributions to FSA, Contributions to an FSA HRA, Contributions to an HRA HSA, Contributions to an HSA MSA, Contributions to an MSA D Death of HSA holder, Death of HSA Holder MSA holder, Death of the Archer MSA Holder Distributions from FSA, Distributions From an FSA HRA, Distributions From an HRA HSA, Distributions From an HSA MSA, Distributions From an MSA E Employer participation FSA, Employer Participation HRA, Employer Participation HSA, Employer Participation MSA, Employer Participation F Flexible Spending Arrangements Grace Period, Health FSA – grace period. Efile free Flexible spending arrangements, Flexible Spending Arrangements (FSAs), Employer Participation Balance in, Balance in an FSA Contributions to, Contributions to an FSA Distributions from, Distributions From an FSA Qualifying for, Qualifying for an FSA When to contribute, When To Contribute Form 5329, Excess contributions. Efile free , Excess contributions. Efile free 5498–SA, Form 8889. Efile free , Reporting Contributions on Your Return 8853, Additional tax. Efile free , Filing Form 8853 8889, Form 8889. Efile free , Additional tax. Efile free , Filing Form 8889 Free tax services, Free help with your tax return. Efile free H Health plans, high deductible, High deductible health plan (HDHP). Efile free , High deductible health plan (HDHP). Efile free Health reimbursement arrangements, Health Reimbursement Arrangements (HRAs), Employer Participation Balance in, Balance in an HRA Contributions to, Contributions to an HRA Distributions from, Distributions From an HRA Qualifying for, Qualifying for an HRA Health savings accounts, Health Savings Accounts (HSAs), Employment taxes. Efile free Balance in, Balance in an HSA Contributions to, Contributions to an HSA Deemed distributions, Deemed distributions from HSAs. Efile free Distributions from, Distributions From an HSA Last-month rule, Last-month rule. Efile free Partnerships, Reporting Contributions on Your Return Qualifying for, Qualifying for an HSA Rollovers, Rollovers S corporations, Reporting Contributions on Your Return When to contribute, When To Contribute Help (see Tax help) High deductible health plan, High deductible health plan (HDHP). Efile free , High deductible health plan (HDHP). Efile free M Medical expenses, qualified, Qualified medical expenses. Efile free , Qualified medical expenses. Efile free , Qualified medical expenses. Efile free , Qualified medical expenses. Efile free Medical savings accounts, Medical Savings Accounts (MSAs), Medicare Advantage MSAs Balance in, Balance in an Archer MSA Contributions to, Contributions to an MSA Deemed distributions, Deemed distributions from Archer MSAs. Efile free Distributions from, Distributions From an MSA Medicare Advantage MSAs, Medicare Advantage MSAs Qualifying for, Qualifying for an Archer MSA When to contribute, When To Contribute Medicare Advantage MSAs, Medicare Advantage MSAs P Preventive care, High deductible health plan (HDHP). Efile free Publications (see Tax help) Q Qualified HSA funding distribution, Qualified HSA funding distribution. Efile free T Tax help, How To Get Tax Help Testing period Last-month rule, Testing period. Efile free Qualified HSA funding distribution, Funding distribution – testing period. Efile free TTY/TDD information, How To Get Tax Help Prev  Up     Home   More Online Publications
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Understanding your CP259B Notice

Your organization didn’t file a Form 990-PF.


What you need to do

  • File a Form 990-PF
  • Complete the response page
  • Mail it to the address on the notice

    Answers to Common Questions

    What should I do if I have all ready filed Form 990-PF?
    If you filed within the last four weeks using the same name and Employer ID number (EIN) on your notice, you don’t have to do anything. Our system may not have processed your return at the time we mailed the notice.
    If you filed more than four weeks ago or used a different name or EIN, complete the Response form starting on Page 3, and mail it to us with a signed and dated copy of the return.

    What should I do if I don’t think I have to file a Form 990-PF?
    Complete the response form starting on Page 3 of the notice and mail it to us.


    Understanding your notice

    Reading your notice
    Your notice may look different from the sample because the information contained in your notice is tailored to your situation.

    Notice CP259B, Page 1

    Notice CP259B, Page 2

    Notice CP259B, Page 3

    Notice CP259B, Page 4

Page Last Reviewed or Updated: 15-Jan-2014

Printable samples of this notice (PDF)

 

 

How to get help

  • Call the 1-800 number listed on the top right corner of your notice.
  • Authorize someone (e.g., accountant) to contact the IRS on your behalf using Form 2848.
  • See if you qualify for help from a Low Income Taxpayer Clinic.
     

The Efile Free

Efile free 26. Efile free   Car Expenses and Other Employee Business Expenses Table of Contents What's New Introduction Useful Items - You may want to see: Travel ExpensesTraveling Away From Home Tax Home Temporary Assignment or Job What Travel Expenses Are Deductible? Travel in the United States Travel Outside the United States Conventions Entertainment Expenses50% Limit What Entertainment Expenses Are Deductible? What Entertainment Expenses Are Not Deductible? Gift Expenses Transportation ExpensesArmed Forces reservists. Efile free Parking fees. Efile free Advertising display on car. Efile free Car pools. Efile free Hauling tools or instruments. Efile free Union members' trips from a union hall. Efile free Car Expenses RecordkeepingHow To Prove Expenses How Long To Keep Records and Receipts How To ReportGifts. Efile free Statutory employees. Efile free Reimbursements Completing Forms 2106 and 2106-EZ Special Rules What's New Standard mileage rate. Efile free  For 2013, the standard mileage rate for the cost of operating your car for business use is 56½ cents per mile. Efile free Car expenses and use of the standard mileage rate are explained under Transportation Expenses , later. Efile free Depreciation limits on cars, trucks, and vans. Efile free  For 2013, the first-year limit on the total section 179 deduction, special depreciation allowance, and depreciation deduction for cars remains at $11,160 ($3,160 if you elect not to claim the special depreciation allowance). Efile free For trucks and vans the first-year limit remains at $11,360 ($3,360 if you elect not to claim the special depreciation allowance). Efile free For more information, see Depreciation limits in Publication 463. Efile free Introduction You may be able to deduct the ordinary and necessary business-related expenses you have for: Travel, Entertainment, Gifts, or Transportation. Efile free An ordinary expense is one that is common and accepted in your trade or business. Efile free A necessary expense is one that is helpful and appropriate for your business. Efile free An expense does not have to be required to be considered necessary. Efile free This chapter explains the following. Efile free What expenses are deductible. Efile free How to report your expenses on your return. Efile free What records you need to prove your expenses. Efile free How to treat any expense reimbursements you may receive. Efile free Who does not need to use this chapter. Efile free   If you are an employee, you will not need to read this chapter if all of the following are true. Efile free You fully accounted to your employer for your work-related expenses. Efile free You received full reimbursement for your expenses. Efile free Your employer required you to return any excess reimbursement and you did so. Efile free There is no amount shown with a code “L” in box 12 of your Form W-2, Wage and Tax Statement. Efile free If you meet all of these conditions, there is no need to show the expenses or the reimbursements on your return. Efile free See Reimbursements , later, if you would like more information on reimbursements and accounting to your employer. Efile free    If you meet these conditions and your employer included reimbursements on your Form W-2 in error, ask your employer for a corrected Form W-2. Efile free Useful Items - You may want to see: Publication 463 Travel, Entertainment, Gift, and Car Expenses 535 Business Expenses Form (and Instructions) Schedule A (Form 1040) Itemized Deductions Schedule C (Form 1040) Profit or Loss From Business Schedule C-EZ (Form 1040) Net Profit From Business Schedule F (Form 1040) Profit or Loss From Farming Form 2106 Employee Business Expenses Form 2106-EZ Unreimbursed Employee Business Expenses Travel Expenses If you temporarily travel away from your tax home, you can use this section to determine if you have deductible travel expenses. Efile free This section discusses: Traveling away from home, Tax home, Temporary assignment or job, and What travel expenses are deductible. Efile free It also discusses the standard meal allowance, rules for travel inside and outside the United States, and deductible convention expenses. Efile free Travel expenses defined. Efile free   For tax purposes, travel expenses are the ordinary and necessary expenses (defined earlier) of traveling away from home for your business, profession, or job. Efile free   You will find examples of deductible travel expenses in Table 26-1 . Efile free Traveling Away From Home You are traveling away from home if: Your duties require you to be away from the general area of your tax home (defined later) substantially longer than an ordinary day's work, and You need to sleep or rest to meet the demands of your work while away from home. Efile free This rest requirement is not satisfied by merely napping in your car. Efile free You do not have to be away from your tax home for a whole day or from dusk to dawn as long as your relief from duty is long enough to get necessary sleep or rest. Efile free Example 1. Efile free You are a railroad conductor. Efile free You leave your home terminal on a regularly scheduled round-trip run between two cities and return home 16 hours later. Efile free During the run, you have 6 hours off at your turnaround point where you eat two meals and rent a hotel room to get necessary sleep before starting the return trip. Efile free You are considered to be away from home. Efile free Example 2. Efile free You are a truck driver. Efile free You leave your terminal and return to it later the same day. Efile free You get an hour off at your turnaround point to eat. Efile free Because you are not off to get necessary sleep and the brief time off is not an adequate rest period, you are not traveling away from home. Efile free Members of the Armed Forces. Efile free   If you are a member of the U. Efile free S. Efile free Armed Forces on a permanent duty assignment overseas, you are not traveling away from home. Efile free You cannot deduct your expenses for meals and lodging. Efile free You cannot deduct these expenses even if you have to maintain a home in the United States for your family members who are not allowed to accompany you overseas. Efile free If you are transferred from one permanent duty station to another, you may have deductible moving expenses, which are explained in Publication 521, Moving Expenses. Efile free    A naval officer assigned to permanent duty aboard a ship that has regular eating and living facilities has a tax home aboard ship for travel expense purposes. Efile free Tax Home To determine whether you are traveling away from home, you must first determine the location of your tax home. Efile free Generally, your tax home is your regular place of business or post of duty, regardless of where you maintain your family home. Efile free It includes the entire city or general area in which your business or work is located. Efile free If you have more than one regular place of business, your tax home is your main place of business. Efile free See Main place of business or work , later. Efile free If you do not have a regular or a main place of business because of the nature of your work, then your tax home may be the place where you regularly live. Efile free See No main place of business or work , later. Efile free If you do not have a regular or a main place of business or post of duty and there is no place where you regularly live, you are considered an itinerant (a transient) and your tax home is wherever you work. Efile free As an itinerant, you cannot claim a travel expense deduction because you are never considered to be traveling away from home. Efile free Main place of business or work. Efile free   If you have more than one place of business or work, consider the following when determining which one is your main place of business or work. Efile free The total time you ordinarily spend in each place. Efile free The level of your business activity in each place. Efile free Whether your income from each place is significant or insignificant. Efile free Example. Efile free You live in Cincinnati where you have a seasonal job for 8 months each year and earn $40,000. Efile free You work the other 4 months in Miami, also at a seasonal job, and earn $15,000. Efile free Cincinnati is your main place of work because you spend most of your time there and earn most of your income there. Efile free No main place of business or work. Efile free   You may have a tax home even if you do not have a regular or main place of business or work. Efile free Your tax home may be the home where you regularly live. Efile free Factors used to determine tax home. Efile free   If you do not have a regular or main place of business or work, use the following three factors to determine where your tax home is. Efile free You perform part of your business in the area of your main home and use that home for lodging while doing business in the area. Efile free You have living expenses at your main home that you duplicate because your business requires you to be away from that home. Efile free You have not abandoned the area in which both your historical place of lodging and your claimed main home are located; you have a member or members of your family living at your main home; or you often use that home for lodging. Efile free   If you satisfy all three factors, your tax home is the home where you regularly live. Efile free If you satisfy only two factors, you may have a tax home depending on all the facts and circumstances. Efile free If you satisfy only one factor, you are an itinerant; your tax home is wherever you work and you cannot deduct travel expenses. Efile free Example. Efile free You are single and live in Boston in an apartment you rent. Efile free You have worked for your employer in Boston for a number of years. Efile free Your employer enrolls you in a 12-month executive training program. Efile free You do not expect to return to work in Boston after you complete your training. Efile free During your training, you do not do any work in Boston. Efile free Instead, you receive classroom and on-the-job training throughout the United States. Efile free You keep your apartment in Boston and return to it frequently. Efile free You use your apartment to conduct your personal business. Efile free You also keep up your community contacts in Boston. Efile free When you complete your training, you are transferred to Los Angeles. Efile free You do not satisfy factor (1) because you did not work in Boston. Efile free You satisfy factor (2) because you had duplicate living expenses. Efile free You also satisfy factor (3) because you did not abandon your apartment in Boston as your main home, you kept your community contacts, and you frequently returned to live in your apartment. Efile free Therefore, you have a tax home in Boston. Efile free Tax home different from family home. Efile free   If you (and your family) do not live at your tax home (defined earlier), you cannot deduct the cost of traveling between your tax home and your family home. Efile free You also cannot deduct the cost of meals and lodging while at your tax home. Efile free See Example 1 . Efile free   If you are working temporarily in the same city where you and your family live, you may be considered as traveling away from home. Efile free See Example 2 . Efile free Example 1. Efile free You are a truck driver and you and your family live in Tucson. Efile free You are employed by a trucking firm that has its terminal in Phoenix. Efile free At the end of your long runs, you return to your home terminal in Phoenix and spend one night there before returning home. Efile free You cannot deduct any expenses you have for meals and lodging in Phoenix or the cost of traveling from Phoenix to Tucson. Efile free This is because Phoenix is your tax home. Efile free Example 2. Efile free Your family home is in Pittsburgh, where you work 12 weeks a year. Efile free The rest of the year you work for the same employer in Baltimore. Efile free In Baltimore, you eat in restaurants and sleep in a rooming house. Efile free Your salary is the same whether you are in Pittsburgh or Baltimore. Efile free Because you spend most of your working time and earn most of your salary in Baltimore, that city is your tax home. Efile free You cannot deduct any expenses you have for meals and lodging there. Efile free However, when you return to work in Pittsburgh, you are away from your tax home even though you stay at your family home. Efile free You can deduct the cost of your round trip between Baltimore and Pittsburgh. Efile free You can also deduct your part of your family's living expenses for meals and lodging while you are living and working in Pittsburgh. Efile free Temporary Assignment or Job You may regularly work at your tax home and also work at another location. Efile free It may not be practical to return to your tax home from this other location at the end of each work day. Efile free Temporary assignment vs. Efile free indefinite assignment. Efile free   If your assignment or job away from your main place of work is temporary, your tax home does not change. Efile free You are considered to be away from home for the whole period you are away from your main place of work. Efile free You can deduct your travel expenses if they otherwise qualify for deduction. Efile free Generally, a temporary assignment in a single location is one that is realistically expected to last (and does in fact last) for 1 year or less. Efile free   However, if your assignment or job is indefinite, the location of the assignment or job becomes your new tax home and you cannot deduct your travel expenses while there. Efile free An assignment or job in a single location is considered indefinite if it is realistically expected to last for more than 1 year, whether or not it actually lasts for more than 1 year. Efile free   If your assignment is indefinite, you must include in your income any amounts you receive from your employer for living expenses, even if they are called travel allowances and you account to your employer for them. Efile free You may be able to deduct the cost of relocating to your new tax home as a moving expense. Efile free See Publication 521 for more information. Efile free Exception for federal crime investigations or prosecutions. Efile free   If you are a federal employee participating in a federal crime investigation or prosecution, you are not subject to the 1-year rule. Efile free This means you may be able to deduct travel expenses even if you are away from your tax home for more than 1 year, provided you meet the other requirements for deductibility. Efile free   For you to qualify, the Attorney General (or his or her designee) must certify that you are traveling: For the federal government, In a temporary duty status, and To investigate or prosecute, or provide support services for the investigation or prosecution of a federal crime. Efile free Determining temporary or indefinite. Efile free   You must determine whether your assignment is temporary or indefinite when you start work. Efile free If you expect an assignment or job to last for 1 year or less, it is temporary unless there are facts and circumstances that indicate otherwise. Efile free An assignment or job that is initially temporary may become indefinite due to changed circumstances. Efile free A series of assignments to the same location, all for short periods but that together cover a long period, may be considered an indefinite assignment. Efile free Going home on days off. Efile free   If you go back to your tax home from a temporary assignment on your days off, you are not considered away from home while you are in your hometown. Efile free You cannot deduct the cost of your meals and lodging there. Efile free However, you can deduct your travel expenses, including meals and lodging, while traveling between your temporary place of work and your tax home. Efile free You can claim these expenses up to the amount it would have cost you to stay at your temporary place of work. Efile free   If you keep your hotel room during your visit home, you can deduct the cost of your hotel room. Efile free In addition, you can deduct your expenses of returning home up to the amount you would have spent for meals had you stayed at your temporary place of work. Efile free Probationary work period. Efile free   If you take a job that requires you to move, with the understanding that you will keep the job if your work is satisfactory during a probationary period, the job is indefinite. Efile free You cannot deduct any of your expenses for meals and lodging during the probationary period. Efile free What Travel Expenses Are Deductible? Once you have determined that you are traveling away from your tax home, you can determine what travel expenses are deductible. Efile free You can deduct ordinary and necessary expenses you have when you travel away from home on business. Efile free The type of expense you can deduct depends on the facts and your circumstances. Efile free Table 26-1 summarizes travel expenses you may be able to deduct. Efile free You may have other deductible travel expenses that are not covered there, depending on the facts and your circumstances. Efile free When you travel away from home on business, you should keep records of all the expenses you have and any advances you receive from your employer. Efile free You can use a log, diary, notebook, or any other written record to keep track of your expenses. Efile free The types of expenses you need to record, along with supporting documentation, are described in Table 26-2 , later. Efile free Separating costs. Efile free   If you have one expense that includes the costs of meals, entertainment, and other services (such as lodging or transportation), you must allocate that expense between the cost of meals and entertainment and the cost of other services. Efile free You must have a reasonable basis for making this allocation. Efile free For example, you must allocate your expenses if a hotel includes one or more meals in its room charge. Efile free Travel expenses for another individual. Efile free   If a spouse, dependent, or other individual goes with you (or your employee) on a business trip or to a business convention, you generally cannot deduct his or her travel expenses. Efile free Employee. Efile free   You can deduct the travel expenses of someone who goes with you if that person: Is your employee, Has a bona fide business purpose for the travel, and Would otherwise be allowed to deduct the travel expenses. Efile free Business associate. Efile free   If a business associate travels with you and meets the conditions in (2) and (3) above, you can deduct the travel expenses you have for that person. Efile free A business associate is someone with whom you could reasonably expect to engage or deal in the active conduct of your business. Efile free A business associate can be a current or prospective (likely to become) customer, client, supplier, employee, agent, partner, or professional advisor. Efile free Bona fide business purpose. Efile free   A bona fide business purpose exists if you can prove a real business purpose for the individual's presence. Efile free Incidental services, such as typing notes or assisting in entertaining customers, are not enough to make the expenses deductible. Efile free Example. Efile free Jerry drives to Chicago on business and takes his wife, Linda, with him. Efile free Linda is not Jerry's employee. Efile free Linda occasionally types notes, performs similar services, and accompanies Jerry to luncheons and dinners. Efile free The performance of these services does not establish that her presence on the trip is necessary to the conduct of Jerry's business. Efile free Her expenses are not deductible. Efile free Jerry pays $199 a day for a double room. Efile free A single room costs $149 a day. Efile free He can deduct the total cost of driving his car to and from Chicago, but only $149 a day for his hotel room. Efile free If he uses public transportation, he can deduct only his fare. Efile free Table 26-1. Efile free Travel Expenses You Can Deduct This chart summarizes expenses you can deduct when you travel away from home for business purposes. Efile free IF you have expenses for. Efile free . Efile free . Efile free THEN you can deduct the cost of. Efile free . Efile free . Efile free transportation travel by airplane, train, bus, or car between your home and your business destination. Efile free If you were provided with a ticket or you are riding free as a result of a frequent traveler or similar program, your cost is zero. Efile free If you travel by ship, see Luxury Water Travel and Cruise ships (under Conventions) in Publication 463 for additional rules and limits. Efile free taxi, commuter bus, and airport limousine fares for these and other types of transportation that take you between: The airport or station and your hotel, and The hotel and the work location of your customers or clients, your business meeting place, or your temporary work location. Efile free baggage and shipping sending baggage and sample or display material between your regular and temporary work locations. Efile free car operating and maintaining your car when traveling away from home on business. Efile free You can deduct actual expenses or the standard mileage rate as well as business-related tolls and parking. Efile free If you rent a car while away from home on business, you can deduct only the business-use portion of the expenses. Efile free lodging and meals your lodging and meals if your business trip is overnight or long enough that you need to stop for sleep or rest to properly perform your duties. Efile free Meals include amounts spent for food, beverages, taxes, and related tips. Efile free See Meals and Incidental Expenses for additional rules and limits. Efile free cleaning dry cleaning and laundry. Efile free telephone business calls while on your business trip. Efile free This includes business communication by fax machine or other communication devices. Efile free tips tips you pay for any expenses in this chart. Efile free other other similar ordinary and necessary expenses related to your business travel. Efile free These expenses might include transportation to or from a business meal, public stenographer's fees, computer rental fees, and operating and maintaining a house trailer. Efile free Meals and Incidental Expenses You can deduct the cost of meals in either of the following situations. Efile free It is necessary for you to stop for substantial sleep or rest to properly perform your duties while traveling away from home on business. Efile free The meal is business-related entertainment. Efile free Business-related entertainment is discussed under Entertainment Expenses , later. Efile free The following discussion deals only with meals (and incidental expenses) that are not business-related entertainment. Efile free Lavish or extravagant. Efile free   You cannot deduct expenses for meals that are lavish or extravagant. Efile free An expense is not considered lavish or extravagant if it is reasonable based on the facts and circumstances. Efile free Expenses will not be disallowed merely because they are more than a fixed dollar amount or take place at deluxe restaurants, hotels, nightclubs, or resorts. Efile free 50% limit on meals. Efile free   You can figure your meal expenses using either of the following methods. Efile free Actual cost. Efile free The standard meal allowance. Efile free Both of these methods are explained below. Efile free But, regardless of the method you use, you generally can deduct only 50% of the unreimbursed cost of your meals. Efile free   If you are reimbursed for the cost of your meals, how you apply the 50% limit depends on whether your employer's reimbursement plan was accountable or nonaccountable. Efile free If you are not reimbursed, the 50% limit applies whether the unreimbursed meal expense is for business travel or business entertainment. Efile free The 50% limit is explained later under Entertainment Expenses . Efile free Accountable and nonaccountable plans are discussed later under Reimbursements . Efile free Actual cost. Efile free   You can use the actual cost of your meals to figure the amount of your expense before reimbursement and application of the 50% deduction limit. Efile free If you use this method, you must keep records of your actual cost. Efile free Standard meal allowance. Efile free   Generally, you can use the “standard meal allowance” method as an alternative to the actual cost method. Efile free It allows you to use a set amount for your daily meals and incidental expenses (M&IE), instead of keeping records of your actual costs. Efile free The set amount varies depending on where and when you travel. Efile free In this chapter, “standard meal allowance” refers to the federal rate for M&IE, discussed later under Amount of standard meal allowance . Efile free If you use the standard meal allowance, you still must keep records to prove the time, place, and business purpose of your travel. Efile free See Recordkeeping , later. Efile free Incidental expenses. Efile free   The term “incidental expenses” means fees and tips given to porters, baggage carriers, hotel staff, and staff on ships. Efile free Incidental expenses do not include expenses for laundry, cleaning and pressing of clothing, lodging taxes, costs of telegrams or telephone calls, transportation between places of lodging or business and places where meals are taken, or the mailing cost of filing travel vouchers and paying employer-sponsored charge card billings. Efile free Incidental expenses only method. Efile free   You can use an optional method (instead of actual cost) for deducting incidental expenses only. Efile free The amount of the deduction is $5 a day. Efile free You can use this method only if you did not pay or incur any meal expenses. Efile free You cannot use this method on any day that you use the standard meal allowance. Efile free    Federal employees should refer to the Federal Travel Regulations at  www. Efile free gsa. Efile free gov. Efile free Find “What GSA Offers” and click on “Regulations: FMR, FTR, & FAR” for Federal Travel Regulation (FTR) for changes affecting claims for reimbursement. Efile free 50% limit may apply. Efile free   If you use the standard meal allowance method for meal expenses and you are not reimbursed or you are reimbursed under a nonaccountable plan, you can generally deduct only 50% of the standard meal allowance. Efile free If you are reimbursed under an accountable plan and you are deducting amounts that are more than your reimbursements, you can deduct only 50% of the excess amount. Efile free The 50% limit is explained later under Entertainment Expenses . Efile free Accountable and nonaccountable plans are discussed later under Reimbursements . Efile free There is no optional standard lodging amount similar to the standard meal allowance. Efile free Your allowable lodging expense deduction is your actual cost. Efile free Who can use the standard meal allowance. Efile free   You can use the standard meal allowance whether you are an employee or self-employed, and whether or not you are reimbursed for your traveling expenses. Efile free   Use of the standard meal allowance for other travel. Efile free    You can use the standard meal allowance to figure your meal expenses when you travel in connection with investment and other income-producing property. Efile free You can also use it to figure your meal expenses when you travel for qualifying educational purposes. Efile free You cannot use the standard meal allowance to figure the cost of your meals when you travel for medical or charitable purposes. Efile free Amount of standard meal allowance. Efile free   The standard meal allowance is the federal M&IE rate. Efile free For travel in 2013, the daily rate for most small localities in the United States is $46. Efile free   Most major cities and many other localities in the United States are designated as high-cost areas, qualifying for higher standard meal allowances. Efile free You can find this information (organized by state) on the Internet at www. Efile free gsa. Efile free gov. Efile free Click on “Per Diem Rates,” then select “2013” for the period January 1, 2013 – September 30, 2013, and select “2014” for the period October 1, 2013 – December 31, 2013. Efile free However, you can apply the rates in effect before October 1, 2013, for expenses of all travel within the United States for 2013 instead of the updated rates. Efile free You must consistently use either the rates for the first 9 months for all of 2013 or the updated rates for the period of October 1, 2013, through December 31, 2013. Efile free   If you travel to more than one location in one day, use the rate in effect for the area where you stop for sleep or rest. Efile free If you work in the transportation industry, however, see Special rate for transportation workers , later. Efile free Standard meal allowance for areas outside the continental United States. Efile free    The standard meal allowance rates above do not apply to travel in Alaska, Hawaii, or any other location outside the continental United States. Efile free The Department of Defense establishes per diem rates for Alaska, Hawaii, Puerto Rico, American Samoa, Guam, Midway, the Northern Mariana Islands, the U. Efile free S. Efile free Virgin Islands, Wake Island, and other non-foreign areas outside the continental United States. Efile free The Department of State establishes per diem rates for all other foreign areas. Efile free    You can access per diem rates for non-foreign areas outside the continental United States at: www. Efile free defensetravel. Efile free dod. Efile free mil/site/perdiemCalc. Efile free cfm. Efile free You can access all other foreign per diem rates at www. Efile free state. Efile free gov/travel/. Efile free Click on “Travel Per Diem Allowances for Foreign Areas” under “Foreign Per Diem Rates,” to obtain the latest foreign per diem rates. Efile free Special rate for transportation workers. Efile free   You can use a special standard meal allowance if you work in the transportation industry. Efile free You are in the transportation industry if your work: Directly involves moving people or goods by airplane, barge, bus, ship, train, or truck, and Regularly requires you to travel away from home and, during any single trip, usually involves travel to areas eligible for different standard meal allowance rates. Efile free If this applies to you, you can claim a standard daily meal allowance of $59 ($65 for travel outside the continental United States). Efile free   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 or rest. Efile free If you choose to use the special rate for any trip, you must use the special rate (and not use the regular standard meal allowance rates) for all trips you take that year. Efile free Travel for days you depart and return. Efile free   For both the day you depart for and the day you return from a business trip, you must prorate the standard meal allowance (figure a reduced amount for each day). Efile free You can do so by one of two methods. Efile free Method 1: You can claim 3/4 of the standard meal allowance. Efile free Method 2: You can prorate using any method that you consistently apply and that is in accordance with reasonable business practice. Efile free Example. Efile free Jen is employed in New Orleans as a convention planner. Efile free In March, her employer sent her on a 3-day trip to Washington, DC, to attend a planning seminar. Efile free She left her home in New Orleans at 10 a. Efile free m. Efile free on Wednesday and arrived in Washington, DC, at 5:30 p. Efile free m. Efile free After spending two nights there, she flew back to New Orleans on Friday and arrived back home at 8:00 p. Efile free m. Efile free Jen's employer gave her a flat amount to cover her expenses and included it with her wages. Efile free Under Method 1, Jen can claim 2½ days of the standard meal allowance for Washington, DC: 3/4 of the daily rate for Wednesday and Friday (the days she departed and returned), and the full daily rate for Thursday. Efile free Under Method 2, Jen could also use any method that she applies consistently and that is in accordance with reasonable business practice. Efile free For example, she could claim 3 days of the standard meal allowance even though a federal employee would have to use Method 1 and be limited to only 2½ days. Efile free Travel in the United States The following discussion applies to travel in the United States. Efile free For this purpose, the United States includes only the 50 states and the District of Columbia. Efile free The treatment of your travel expenses depends on how much of your trip was business related and on how much of your trip occurred within the United States. Efile free See Part of Trip Outside the United States , later. Efile free Trip Primarily for Business You can deduct all your travel expenses if your trip was entirely business related. Efile free If your trip was primarily for business and, while at your business destination, you extended your stay for a vacation, made a personal side trip, or had other personal activities, you can deduct your business-related travel expenses. Efile free These expenses include the travel costs of getting to and from your business destination and any business-related expenses at your business destination. Efile free Example. Efile free You work in Atlanta and take a business trip to New Orleans in May. Efile free On your way home, you stop in Mobile to visit your parents. Efile free You spend $1,996 for the 9 days you are away from home for travel, meals, lodging, and other travel expenses. Efile free If you had not stopped in Mobile, you would have been gone only 6 days, and your total cost would have been $1,696. Efile free You can deduct $1,696 for your trip, including the cost of round-trip transportation to and from New Orleans. Efile free The deduction for your meals is subject to the 50% limit on meals mentioned earlier. Efile free Trip Primarily for Personal Reasons If your trip was primarily for personal reasons, such as a vacation, the entire cost of the trip is a nondeductible personal expense. Efile free However, you can deduct any expenses you have while at your destination that are directly related to your business. Efile free A trip to a resort or on a cruise ship may be a vacation even if the promoter advertises that it is primarily for business. Efile free The scheduling of incidental business activities during a trip, such as viewing videotapes or attending lectures dealing with general subjects, will not change what is really a vacation into a business trip. Efile free Part of Trip Outside the United States If part of your trip is outside the United States, use the rules described later under Travel Outside the United States for that part of the trip. Efile free For the part of your trip that is inside the United States, use the rules for travel in the United States. Efile free Travel outside the United States does not include travel from one point in the United States to another point in the United States. Efile free The following discussion can help you determine whether your trip was entirely within the United States. Efile free Public transportation. Efile free   If you travel by public transportation, any place in the United States where that vehicle makes a scheduled stop is a point in the United States. Efile free Once the vehicle leaves the last scheduled stop in the United States on its way to a point outside the United States, you apply the rules under Travel Outside the United States . Efile free Example. Efile free You fly from New York to Puerto Rico with a scheduled stop in Miami. Efile free You return to New York nonstop. Efile free The flight from New York to Miami is in the United States, so only the flight from Miami to Puerto Rico is outside the United States. Efile free Because there are no scheduled stops between Puerto Rico and New York, all of the return trip is outside the United States. Efile free Private car. Efile free   Travel by private car in the United States is travel between points in the United States, even when you are on your way to a destination outside the United States. Efile free Example. Efile free You travel by car from Denver to Mexico City and return. Efile free Your travel from Denver to the border and from the border back to Denver is travel in the United States, and the rules in this section apply. Efile free The rules under Travel Outside the United States apply to your trip from the border to Mexico City and back to the border. Efile free Travel Outside the United States If any part of your business travel is outside the United States, some of your deductions for the cost of getting to and from your destination may be limited. Efile free For this purpose, the United States includes only the 50 states and the District of Columbia. Efile free How much of your travel expenses you can deduct depends in part upon how much of your trip outside the United States was business related. Efile free See chapter 1 of Publication 463 for information on luxury water travel. Efile free Travel Entirely for Business or Considered Entirely for Business You can deduct all your travel expenses of getting to and from your business destination if your trip is entirely for business or considered entirely for business. Efile free Travel entirely for business. Efile free   If you travel outside the United States and you spend the entire time on business activities, you can deduct all of your travel expenses. Efile free Travel considered entirely for business. Efile free   Even if you did not spend your entire time on business activities, your trip is considered entirely for business if you meet at least one of the following four exceptions. Efile free Exception 1 - No substantial control. Efile free   Your trip is considered entirely for business if you did not have substantial control over arranging the trip. Efile free The fact that you control the timing of your trip does not, by itself, mean that you have substantial control over arranging your trip. Efile free   You do not have substantial control over your trip if you: Are an employee who was reimbursed or paid a travel expense allowance, Are not related to your employer, and Are not a managing executive. Efile free    “Related to your employer” is defined later in this chapter under Per Diem and Car Allowances . Efile free   A “managing executive” is an employee who has the authority and responsibility, without being subject to the veto of another, to decide on the need for the business travel. Efile free    A self-employed person generally has substantial control over arranging business trips. Efile free Exception 2 - Outside United States no more than a week. Efile free   Your trip is considered entirely for business if you were outside the United States for a week or less, combining business and nonbusiness activities. Efile free One week means 7 consecutive days. Efile free In counting the days, do not count the day you leave the United States, but do count the day you return to the United States. Efile free Exception 3 - Less than 25% of time on personal activities. Efile free   Your trip is considered entirely for business if: You were outside the United States for more than a week, and You spent less than 25% of the total time you were outside the United States on nonbusiness activities. Efile free For this purpose, count both the day your trip began and the day it ended. Efile free Exception 4 - Vacation not a major consideration. Efile free   Your trip is considered entirely for business if you can establish that a personal vacation was not a major consideration, even if you have substantial control over arranging the trip. Efile free Travel Primarily for Business If you travel outside the United States primarily for business but spend some of your time on nonbusiness activities, you generally cannot deduct all of your travel expenses. Efile free You can only deduct the business portion of your cost of getting to and from your destination. Efile free You must allocate the costs between your business and nonbusiness activities to determine your deductible amount. Efile free These travel allocation rules are discussed in chapter 1 of Publication 463. Efile free You do not have to allocate your travel expense deduction if you meet one of the four exceptions listed earlier under Travel considered entirely for business. Efile free In those cases, you can deduct the total cost of getting to and from your destination. Efile free Travel Primarily for Personal Reasons If you travel outside the United States primarily for vacation or for investment purposes, the entire cost of the trip is a nondeductible personal expense. Efile free If you spend some time attending brief professional seminars or a continuing education program, you can deduct your registration fees and other expenses you have that are directly related to your business. Efile free Conventions You can deduct your travel expenses when you attend a convention if you can show that your attendance benefits your trade or business. Efile free You cannot deduct the travel expenses for your family. Efile free If the convention is for investment, political, social, or other purposes unrelated to your trade or business, you cannot deduct the expenses. Efile free Your appointment or election as a delegate does not, in itself, determine whether you can deduct travel expenses. Efile free You can deduct your travel expenses only if your attendance is connected to your own trade or business. Efile free Convention agenda. Efile free   The convention agenda or program generally shows the purpose of the convention. Efile free You can show your attendance at the convention benefits your trade or business by comparing the agenda with the official duties and responsibilities of your position. Efile free The agenda does not have to deal specifically with your official duties and responsibilities; it will be enough if the agenda is so related to your position that it shows your attendance was for business purposes. Efile free Conventions held outside the North American area. Efile free    See chapter 1 of Publication 463 for information on conventions held outside the North American area. Efile free Entertainment Expenses You may be able to deduct business-related entertainment expenses you have for entertaining a client, customer, or employee. Efile free You can deduct entertainment expenses only if they are both ordinary and necessary (defined earlier in the Introduction ) and meet one of the following tests. Efile free Directly-related test. Efile free Associated test. Efile free Both of these tests are explained in chapter 2 of Publication 463. Efile free The amount you can deduct for entertainment expenses may be limited. Efile free Generally, you can deduct only 50% of your unreimbursed entertainment expenses. Efile free This limit is discussed next. Efile free 50% Limit In general, you can deduct only 50% of your business-related meal and entertainment expenses. Efile free (If you are subject to the Department of Transportation's “hours of service” limits, you can deduct 80% of your business-related meal and entertainment expenses. Efile free See Individuals subject to “hours of service” limits , later. Efile free ) The 50% limit applies to employees or their employers, and to self-employed persons (including independent contractors) or their clients, depending on whether the expenses are reimbursed. Efile free Figure 26-A summarizes the general rules explained in this section. Efile free The 50% limit applies to business meals or entertainment expenses you have while: Traveling away from home (whether eating alone or with others) on business, Entertaining customers at your place of business, a restaurant, or other location, or Attending a business convention or reception, business meeting, or business luncheon at a club. Efile free Included expenses. Efile free   Expenses subject to the 50% limit include: Taxes and tips relating to a business meal or entertainment activity, Cover charges for admission to a nightclub, Rent paid for a room in which you hold a dinner or cocktail party, and Amounts paid for parking at a sports arena. Efile free However, the cost of transportation to and from a business meal or a business-related entertainment activity is not subject to the 50% limit. Efile free Application of 50% limit. Efile free   The 50% limit on meal and entertainment expenses applies if the expense is otherwise deductible and is not covered by one of the exceptions discussed later in this section. Efile free   The 50% limit also applies to certain meal and entertainment expenses that are not business related. Efile free It applies to meal and entertainment expenses incurred for the production of income, including rental or royalty income. Efile free It also applies to the cost of meals included in deductible educational expenses. Efile free When to apply the 50% limit. Efile free   You apply the 50% limit after determining the amount that would otherwise qualify for a deduction. Efile free You first have to determine the amount of meal and entertainment expenses that would be deductible under the other rules discussed in this chapter. Efile free Example 1. Efile free You spend $200 for a business-related meal. Efile free If $110 of that amount is not allowable because it is lavish and extravagant, the remaining $90 is subject to the 50% limit. Efile free Your deduction cannot be more than $45 (. Efile free 50 × $90). Efile free Example 2. Efile free You purchase two tickets to a concert and give them to a client. Efile free You purchased the tickets through a ticket agent. Efile free You paid $200 for the two tickets, which had a face value of $80 each ($160 total). Efile free Your deduction cannot be more than $80 (. Efile free 50 × $160). Efile free Exceptions to the 50% Limit Generally, business-related meal and entertainment expenses are subject to the 50% limit. Efile free Figure 26-A can help you determine if the 50% limit applies to you. Efile free Your meal or entertainment expense is not subject to the 50% limit if the expense meets one of the following exceptions. Efile free Employee's reimbursed expenses. Efile free   If you are an employee, you are not subject to the 50% limit on expenses for which your employer reimburses you under an accountable plan. Efile free Accountable plans are discussed later under Reimbursements . Efile free Individuals subject to “hours of service” limits. Efile free   You can deduct a higher percentage of your meal expenses while traveling away from your tax home if the meals take place during or incident to any period subject to the Department of Transportation's “hours of service” limits. Efile free The percentage is 80%. Efile free   Individuals subject to the Department of Transportation's “hours of service” limits include the following persons. Efile free Certain air transportation workers (such as pilots, crew, dispatchers, mechanics, and control tower operators) who are under Federal Aviation Administration regulations. Efile free Interstate truck operators and bus drivers who are under Department of Transportation regulations. Efile free Certain railroad employees (such as engineers, conductors, train crews, dispatchers, and control operations personnel) who are under Federal Railroad Administration regulations. Efile free Certain merchant mariners who are under Coast Guard regulations. Efile free Other exceptions. Efile free   There are also exceptions for the self-employed, advertising expenses, selling meals or entertainment, and charitable sports events. Efile free These are discussed in Publication 463. Efile free Figure 26-A. Efile free Does the 50% Limit Apply to Your Expenses? There are exceptions to these rules. Efile free See Exceptions to the 50% Limit . Efile free Please click here for the text description of the image. Efile free Entertainment expenses: 50% limit What Entertainment Expenses Are Deductible? This section explains different types of entertainment expenses you may be able to deduct. Efile free Entertainment. Efile free    Entertainment includes any activity generally considered to provide entertainment, amusement, or recreation. Efile free Examples include entertaining guests at nightclubs; at social, athletic, and sporting clubs; at theaters; at sporting events; or on hunting, fishing, vacation, and similar trips. Efile free A meal as a form of entertainment. Efile free   Entertainment includes the cost of a meal you provide to a customer or client, whether the meal is a part of other entertainment or by itself. Efile free A meal expense includes the cost of food, beverages, taxes, and tips for the meal. Efile free To deduct an entertainment-related meal, you or your employee must be present when the food or beverages are provided. Efile free You cannot claim the cost of your meal both as an entertainment expense and as a travel expense. Efile free Separating costs. Efile free   If you have one expense that includes the costs of entertainment and other services (such as lodging or transportation), you must allocate that expense between the cost of entertainment and the cost of other services. Efile free You must have a reasonable basis for making this allocation. Efile free For example, you must allocate your expenses if a hotel includes entertainment in its lounge on the same bill with your room charge. Efile free Taking turns paying for meals or entertainment. Efile free   If a group of business acquaintances take turns picking up each others' meal or entertainment checks without regard to whether any business purposes are served, no member of the group can deduct any part of the expense. Efile free Lavish or extravagant expenses. Efile free   You cannot deduct expenses for entertainment that are lavish or extravagant. Efile free An expense is not considered lavish or extravagant if it is reasonable considering the facts and circumstances. Efile free Expenses will not be disallowed just because they are more than a fixed dollar amount or take place at deluxe restaurants, hotels, nightclubs, or resorts. Efile free Trade association meetings. Efile free    You can deduct entertainment expenses that are directly related to, and necessary for, attending business meetings or conventions of certain exempt organizations if the expenses of your attendance are related to your active trade or business. Efile free These organizations include business leagues, chambers of commerce, real estate boards, trade associations, and professional associations. Efile free Entertainment tickets. Efile free   Generally, you cannot deduct more than the face value of an entertainment ticket, even if you paid a higher price. Efile free For example, you cannot deduct service fees you pay to ticket agencies or brokers or any amount over the face value of the tickets you pay to scalpers. Efile free What Entertainment Expenses Are Not Deductible? This section explains different types of entertainment expenses you generally may not be able to deduct. Efile free Club dues and membership fees. Efile free   You cannot deduct dues (including initiation fees) for membership in any club organized for: Business, Pleasure, Recreation, or Other social purpose. Efile free This rule applies to any membership organization if one of its principal purposes is either: To conduct entertainment activities for members or their guests, or To provide members or their guests with access to entertainment facilities. Efile free   The purposes and activities of a club, not its name, will determine whether or not you can deduct the dues. Efile free You cannot deduct dues paid to: Country clubs, Golf and athletic clubs, Airline clubs, Hotel clubs, and Clubs operated to provide meals under circumstances generally considered to be conducive to business discussions. Efile free Entertainment facilities. Efile free   Generally, you cannot deduct any expense for the use of an entertainment facility. Efile free This includes expenses for depreciation and operating costs such as rent, utilities, maintenance, and protection. Efile free   An entertainment facility is any property you own, rent, or use for entertainment. Efile free Examples include a yacht, hunting lodge, fishing camp, swimming pool, tennis court, bowling alley, car, airplane, apartment, hotel suite, or home in a vacation resort. Efile free Out-of-pocket expenses. Efile free   You can deduct out-of-pocket expenses, such as for food and beverages, catering, gas, and fishing bait, that you provided during entertainment at a facility. Efile free These are not expenses for the use of an entertainment facility. Efile free However, these expenses are subject to the directly-related and associated tests and to the 50% Limit discussed earlier. Efile free Additional information. Efile free   For more information on entertainment expenses, including discussions of the directly-related and associated tests, see chapter 2 of Publication 463. Efile free Gift Expenses If you give gifts in the course of your trade or business, you can deduct all or part of the cost. Efile free This section explains the limits and rules for deducting the costs of gifts. Efile free $25 limit. Efile free   You can deduct no more than $25 for business gifts you give directly or indirectly to each person during your tax year. Efile free A gift to a company that is intended for the eventual personal use or benefit of a particular person or a limited class of people will be considered an indirect gift to that particular person or to the individuals within that class of people who receive the gift. Efile free   If you give a gift to a member of a customer's family, the gift is generally considered to be an indirect gift to the customer. Efile free This rule does not apply if you have a bona fide, independent business connection with that family member and the gift is not intended for the customer's eventual use or benefit. Efile free   If you and your spouse both give gifts, both of you are treated as one taxpayer. Efile free It does not matter whether you have separate businesses, are separately employed, or whether each of you has an independent connection with the recipient. Efile free If a partnership gives gifts, the partnership and the partners are treated as one taxpayer. Efile free Incidental costs. Efile free   Incidental costs, such as engraving on jewelry, or packaging, insuring, and mailing, are generally not included in determining the cost of a gift for purposes of the $25 limit. Efile free   A cost is incidental only if it does not add substantial value to the gift. Efile free For example, the cost of customary gift wrapping is an incidental cost. Efile free However, the purchase of an ornamental basket for packaging fruit is not an incidental cost if the value of the basket is substantial compared to the value of the fruit. Efile free Exceptions. Efile free   The following items are not considered gifts for purposes of the $25 limit. Efile free An item that costs $4 or less and: Has your name clearly and permanently imprinted on the gift, and Is one of a number of identical items you widely distribute. Efile free Examples include pens, desk sets, and plastic bags and cases. Efile free Signs, display racks, or other promotional material to be used on the business premises of the recipient. Efile free Gift or entertainment. Efile free   Any item that might be considered either a gift or entertainment generally will be considered entertainment. Efile free However, if you give a customer packaged food or beverages you intend the customer to use at a later date, treat it as a gift. Efile free    If you give a customer tickets to a theater performance or sporting event and you do not go with the customer to the performance or event, you have a choice. Efile free You can treat the cost of the tickets as either a gift expense or an entertainment expense, whichever is to your advantage. Efile free    If you go with the customer to the event, you must treat the cost of the tickets as an entertainment expense. Efile free You cannot choose, in this case, to treat the cost of the tickets as a gift expense. Efile free Transportation Expenses This section discusses expenses you can deduct for business transportation when you are not traveling away from home as defined earlier under Travel Expenses . Efile free These expenses include the cost of transportation by air, rail, bus, taxi, etc. Efile free , and the cost of driving and maintaining your car. Efile free Transportation expenses include the ordinary and necessary costs of all of the following. Efile free Getting from one workplace to another in the course of your business or profession when you are traveling within the area of your tax home. Efile free (Tax home is defined earlier under Travel Expenses . Efile free ) Visiting clients or customers. Efile free Going to a business meeting away from your regular workplace. Efile free Getting from your home to a temporary workplace when you have one or more regular places of work. Efile free These temporary workplaces can be either within the area of your tax home or outside that area. Efile free Transportation expenses do not include expenses you have while traveling away from home overnight. Efile free Those expenses are travel expenses, discussed earlier. Efile free However, if you use your car while traveling away from home overnight, use the rules in this section to figure your car expense deduction. Efile free See Car Expenses , later. Efile free Illustration of transportation expenses. Efile free    Figure 26-B illustrates the rules for when you can deduct transportation expenses when you have a regular or main job away from your home. Efile free You may want to refer to it when deciding whether you can deduct your transportation expenses. Efile free Daily transportation expenses you incur while traveling from home to one or more regular places of business are generally nondeductible commuting expenses. Efile free However, there are many exceptions for deducting transportation expenses, like whether your work location is temporary (inside or outside the metropolitan area), traveling for same trade or business, or if you have a home office. Efile free Temporary work location. Efile free   If you have one or more regular work locations away from your home and you commute to a temporary work location in the same trade or business, you can deduct the expenses of the daily round-trip transportation between your home and the temporary location, regardless of distance. Efile free   If your employment at a work location is realistically expected to last (and does in fact last) for 1 year or less, the employment is temporary unless there are facts and circumstances that would indicate otherwise. Efile free   If your employment at a work location is realistically expected to last for more than 1 year or if there is no realistic expectation that the employment will last for 1 year or less, the employment is not temporary, regardless of whether it actually lasts for more than 1 year. Efile free   If employment at a work location initially is realistically expected to last for 1 year or less, but at some later date the employment is realistically expected to last more than 1 year, that employment will be treated as temporary (unless there are facts and circumstances that would indicate otherwise) until your expectation changes. Efile free It will not be treated as temporary after the date you determine it will last more than 1 year. Efile free   If the temporary work location is beyond the general area of your regular place of work and you stay overnight, you are traveling away from home. Efile free You may have deductible travel expenses as discussed earlier in this chapter. Efile free No regular place of work. Efile free   If you have no regular place of work but ordinarily work in the metropolitan area where you live, you can deduct daily transportation costs between home and a temporary work site outside that metropolitan area. Efile free   Generally, a metropolitan area includes the area within the city limits and the suburbs that are considered part of that metropolitan area. Efile free   You cannot deduct daily transportation costs between your home and temporary work sites within your metropolitan area. Efile free These are nondeductible commuting expenses. Efile free Two places of work. Efile free   If you work at two places in one day, whether or not for the same employer, you can deduct the expense of getting from one workplace to the other. Efile free However, if for some personal reason you do not go directly from one location to the other, you cannot deduct more than the amount it would have cost you to go directly from the first location to the second. Efile free   Transportation expenses you have in going between home and a part-time job on a day off from your main job are commuting expenses. Efile free You cannot deduct them. Efile free Armed Forces reservists. Efile free   A meeting of an Armed Forces reserve unit is a second place of business if the meeting is held on a day on which you work at your regular job. Efile free You can deduct the expense of getting from one workplace to the other as just discussed under Two places of work , earlier. Efile free   You usually cannot deduct the expense if the reserve meeting is held on a day on which you do not work at your regular job. Efile free In this case, your transportation generally is a nondeductible commuting expense. Efile free However, you can deduct your transportation expenses if the location of the meeting is temporary and you have one or more regular places of work. Efile free   If you ordinarily work in a particular metropolitan area but not at any specific location and the reserve meeting is held at a temporary location outside that metropolitan area, you can deduct your transportation expenses. Efile free   If you travel away from home overnight to attend a guard or reserve meeting, you can deduct your travel expenses. Efile free These expenses are discussed earlier under Travel Expenses . Efile free   If you travel more than 100 miles away from home in connection with your performance of services as a member of the reserves, you may be able to deduct some of your reserve-related travel costs as an adjustment to income rather than as an itemized deduction. Efile free See Armed Forces reservists traveling more than 100 miles from home under Special Rules, later. Efile free Commuting expenses. Efile free   You cannot deduct the costs of taking a bus, trolley, subway, or taxi, or of driving a car between your home and your main or regular place of work. Efile free These costs are personal commuting expenses. Efile free You cannot deduct commuting expenses no matter how far your home is from your regular place of work. Efile free You cannot deduct commuting expenses even if you work during the commuting trip. Efile free Example. Efile free You sometimes use your cell phone to make business calls while commuting to and from work. Efile free Sometimes business associates ride with you to and from work, and you have a business discussion in the car. Efile free These activities do not change the trip from personal to business. Efile free You cannot deduct your commuting expenses. Efile free Parking fees. Efile free   Fees you pay to park your car at your place of business are nondeductible commuting expenses. Efile free You can, however, deduct business-related parking fees when visiting a customer or client. Efile free Advertising display on car. Efile free   Putting display material that advertises your business on your car does not change the use of your car from personal use to business use. Efile free If you use this car for commuting or other personal uses, you still cannot deduct your expenses for those uses. Efile free Car pools. Efile free   You cannot deduct the cost of using your car in a nonprofit car pool. Efile free Do not include payments you receive from the passengers in your income. Efile free These payments are considered reimbursements of your expenses. Efile free However, if you operate a car pool for a profit, you must include payments from passengers in your income. Efile free You can then deduct your car expenses (using the rules in this chapter). Efile free Hauling tools or instruments. Efile free   Hauling tools or instruments in your car while commuting to and from work does not make your car expenses deductible. Efile free However, you can deduct any additional costs you have for hauling tools or instruments (such as for renting a trailer you tow with your car). Efile free Union members' trips from a union hall. Efile free   If you get your work assignments at a union hall and then go to your place of work, the costs of getting from the union hall to your place of work are nondeductible commuting expenses. Efile free Although you need the union to get your work assignments, you are employed where you work, not where the union hall is located. Efile free Office in the home. Efile free   If you have an office in your home that qualifies as a principal place of business, you can deduct your daily transportation costs between your home and another work location in the same trade or business. Efile free (See chapter 28 for information on determining if your home office qualifies as a principal place of business. Efile free ) Figure 26-B. Efile free When Are Transportation Expenses Deductible? Most employees and self-employed persons can use this chart. Efile free (Do not use this chart if your home is your principal place of business. Efile free See Office in the home . Efile free ) Please click here for the text description of the image. Efile free Figure 26-B. Efile free Local Transportation Examples of deductible transportation. Efile free   The following examples show when you can deduct transportation expenses based on the location of your work and your home. Efile free Example 1. Efile free You regularly work in an office in the city where you live. Efile free Your employer sends you to a 1-week training session at a different office in the same city. Efile free You travel directly from your home to the training location and return each day. Efile free You can deduct the cost of your daily round-trip transportation between your home and the training location. Efile free Example 2. Efile free Your principal place of business is in your home. Efile free You can deduct the cost of round-trip transportation between your qualifying home office and your client's or customer's place of business. Efile free Example 3. Efile free You have no regular office, and you do not have an office in your home. Efile free In this case, the location of your first business contact inside the metropolitan area is considered your office. Efile free Transportation expenses between your home and this first contact are nondeductible commuting expenses. Efile free Transportation expenses between your last business contact and your home are also nondeductible commuting expenses. Efile free While you cannot deduct the costs of these first and last trips, you can deduct the costs of going from one client or customer to another. Efile free With no regular or home office, the costs of travel between two or more business contacts in a metropolitan area are deductible while the costs of travel between the home to (and from) business contacts are not deductible. Efile free Car Expenses If you use your car for business purposes, you may be able to deduct car expenses. Efile free You generally can use one of the two following methods to figure your deductible expenses. Efile free Standard mileage rate. Efile free Actual car expenses. Efile free If you use actual car expenses to figure your deduction for a car you lease, there are rules that affect the amount of your lease payments you can deduct. Efile free See Leasing a car under Actual Car Expenses, later. Efile free In this chapter, “car” includes a van, pickup, or panel truck. Efile free Rural mail carriers. Efile free   If you are a rural mail carrier, you may be able to treat the amount of qualified reimbursement you received as the amount of your allowable expense. Efile free Because the qualified reimbursement is treated as paid under an accountable plan, your employer should not include the amount of reimbursement in your income. Efile free   If your vehicle expenses are more than the amount of your reimbursement, you can deduct the unreimbursed expenses as an itemized deduction on Schedule A (Form 1040). Efile free You must complete Form 2106 and attach it to your Form 1040. Efile free   A “qualified reimbursement” is the reimbursement you receive that meets both of the following conditions. Efile free It is given as an equipment maintenance allowance (EMA) to employees of the U. Efile free S. Efile free Postal Service. Efile free It is at the rate contained in the 1991 collective bargaining agreement. Efile free Any later agreement cannot increase the qualified reimbursement amount by more than the rate of inflation. Efile free See your employer for information on your reimbursement. Efile free If you are a rural mail carrier and received a qualified reimbursement, you cannot use the standard mileage rate. Efile free Standard Mileage Rate You may be able to use the standard mileage rate to figure the deductible costs of operating your car for business purposes. Efile free For 2013, the standard mileage rate for business use is 56½ cents per mile. Efile free If you use the standard mileage rate for a year, you cannot deduct your actual car expenses for that year, but see Parking fees and tolls, later. Efile free You generally can use the standard mileage rate whether or not you are reimbursed and whether or not any reimbursement is more or less than the amount figured using the standard mileage rate. Efile free See Reimbursements under How To Report, later. Efile free Choosing the standard mileage rate. Efile free   If you want to use the standard mileage rate for a car you own, you must choose to use it in the first year the car is available for use in your business. Efile free Then in later years, you can choose to use either the standard mileage rate or actual expenses. Efile free   If you want to use the standard mileage rate for a car you lease, you must use it for the entire lease period. Efile free   You must make the choice to use the standard mileage rate by the due date (including extensions) of your return. Efile free You cannot revoke the choice. Efile free However, in a later year, you can switch from the standard mileage rate to the actual expenses method. Efile free If you change to the actual expenses method in a later year, but before your car is fully depreciated, you have to estimate the remaining useful life of the car and use straight line depreciation. Efile free Example. Efile free Larry is an employee who occasionally uses his own car for business purposes. Efile free He purchased the car in 2011, but he did not claim any unreimburse