Christine Hradsky No Comments

Tax Court Sets Boundaries on Commuting Deductions

Commuting Deductions

Commuting between your residence and place of business are generally non-deductable, but there are a few exceptions.

Although you usually can’t deduct typical “commuting” expenses from home, you may qualify for a special exception if you’re away working on temporary assignments. But the IRS and the U.S. Tax Court won’t allow borderline deductions, as evidenced by one case involving a construction worker.

We’ll explain what happened in the case, but first, here is some background information. Read more

Christine Hradsky No Comments

Calculating Deductions for Business Interest Expense

interest expense

The Tax Cuts and Jobs Act generally limits business interest expense deductions for businesses with average annual gross receipts over $25 million, with a few industry-specific exceptions.

One of the most complicated provisions of the Tax Cuts and Jobs Act (TCJA) is the new limitation on deductions for business interest expense. At face value, this limitation seems straightforward, but the devil is in the details. Read more