In a recent issue of the Tax Reduction Letter, we explained how to keep IRS “temporary work location” rules from destroying your business mileage deductions.
In this new issue of the Tax Reduction Letter we’ll demystify the IRS’s complicated “metropolitan area” rules that also impact your business mileage deductions.
The rules get particularly complex if you drive both inside and outside your “metropolitan area.” Oh, and by the way, your metropolitan area isn’t what you think it is.
Confused? I’m not surprised, but don’t worry. I’ll cure your IRS headaches when you read my new article titled Business Mileage: Beware of IRS Assertions of Metropolitan Area Article
Three ways our fact-filled article can help you:
1. We’ll explain the IRS requirement that you define your metropolitan area
The radius (in miles) from your home, partly defines your metropolitan area. And you need to either establish the boundaries of your area or position yourself so the metropolitan area rules don’t apply to you. These confusing but important rules will be explained when you new article.
2. We’ll show you how to define your metropolitan area
This is based on your personal circumstances, but the IRS does provide some useful guidelines. We’ll tell you what they are when you new article.
3. You’ll learn an easy way to make all these problems go away!
If you have an office in your home that qualifies as a principal place of business, you can deduct daily transportation expenses incurred when you travel between your home and another work location. This is true regardless of whether the other work location is “regular” or “temporary” and regardless of the distance you travel. You’ll get all the details when you new article.