Question

Sue works as an auditor for a large CPA firm. She is part of the audit team for ABC, a new client of the firm. Each weekday for 3 weeks Sue drives from her home to ABC headquarters, which is 10 miles from her home, to work as part of the audit team. Which mileage is deductible?

Answer 1

Mileage for commuting from home to a regular work location is typically non-deductible. If ABC's headquarters is a temporary work location for Sue and she normally works elsewhere, her mileage may be deductible. She should consult current tax laws or a professional for a precise deduction eligibility.

Step-by-step explanation:

The question asks which mileage is deductible when Sue, an auditor, drives from her home to the headquarters of ABC, a client of her firm. In the context of tax deductions for business travel, commuting from one's home to a regular place of work (a permanent work location) is generally considered personal commuting expenses, which are non-deductible.

However, if the headquarters of ABC is considered a temporary work location and Sue has a regular employment elsewhere, the mileage for the drive between her home and ABC could potentially be deductible.For Sue's case, the facts that ABC is a new client and that she is only driving to its location for a short, defined period of three weeks could imply that this is a temporary assignment.

Therefore, if these conditions are met and depending on the specifics of tax law which can change annually, the mileage for Sue's travel might be considered deductible business travel expenses. However, for an accurate determination, Sue would need to consult the current tax regulations or a tax professional.