This includes trips to the post office or to a client’s place of business. Therefore, any business-related travel will be deductible. There is no other location where the worker spends more time on these functions.įor freelancers, remote workers, and others who work from home, their home office is their principal place of business.This location in the home is used regularly and exclusively for performing the business and administrative functions of the business.It’s generally the place where the books and records are kept, and where other administrative functions are performed.Ī home office can be a principal place of business if two criteria are met: What is a principal place of business?Ī principal place of business is the primary location where the work of that business is performed. However, driving between one’s principal place of business and a workplace is a deductible travel expense. Commuting – whether a worker is an independent contractor or an employee – is never deductible. This definition depends crucially on the worker’s principal place of business.ĭriving between home and a worker’s principal place of business is considered commuting. ![]() ![]() The crux of the matter is defining when a drive is a commute and when it’s a deductible travel expense. Travel can be one of the most problematic areas for many of your self-employed clients. Independent contractors have an incentive to find all the deductions they can, but sometimes there’s a fine line between what’s deductible and what’s not.
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