QUESTION DETAIL
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My wife owns her own business. Currently all of her job are through an agency. She works at 3 different schools. One school is 5 days a week for multiple clients. 2 schools are 1 night a week. We currently reside in Northville, Michigan. The school she drives to 5 days a week is a 67 mile round-trip drive. The school is located in St. Claire Shores. (I'm not sure if this is considered metro-Detroit.) My wife does not receive mileage reimbursement for the 5-day a week job. All 3 jobs are expected to last less than 1 year. I've figured that all locations are considered "temporary work locations" by the IRS's definition, but I'm not sure if they reside in the "metro" area (33 miles one way). Are we able to claim these miles as a business expense?
ANSWER
The BIDaWIZ Team's Answer:
Travel expenses paid or incurred in connection with a temporary work assignment away from home are deductible if they are outside the Metropolitan area in which you live and work. Unfortunately, St. Claire is considered part of the Detroit Metro area, which would disqualify your spouse from deducting these commuting expenses. There have been recent court cases that have established this precedent. By claiming the deduction, your tax return is at risk during a potential audit.