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Form 2106- Employee Out of Town Travel Expenses(construction workers)on temporary jobs, less than 1 year in duration.Can he use depreciation on the Travel Trailer,purchased for this purpose & expenses related thereto in lieu of hotel/motel expenses because it is less expensive.

This construction worker is working on a "temporary job, less than 1 year" out of town, over 600 miles away (from his permanent home-where his family still lives and he will return to).

(Note*Most of his fellow union construction workers elect to do this when they are working out of town as does most other construction workers around the US for over 40 years that I know of,many of which have been audited and allowed this deduction..)

His IRS auditor has disallowed it because she said (it is a personal asset) although she allowed the Lot Rent the Travel Trailer sat on? I was under the impression that it is allowed as long as it is less than motel/hotel expenses and used in lieu of.
Audit Travel Expenses Individual Taxation
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Tax Professional Answers

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Gerald Nordland
You need to remember that Depreciation is a BUSINESS expense for the investment needed to generate revenue, NOT a Personal expense. If his brother bought the trailer and rented it to him, the brother could deduct depreciation along with the lot rent.
Leave a Comment 316 weeks ago

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Robert Ferguson
The person using the trailer should deduct the payments made as an expense that occurred during the period he used the travel trailer away from his home. The payments would be an expense rather than attempting to depreciate the trailer. The owner can then depreciate the trailer as the owner as it is an income producing asset. Both would then have one of the forms of writing down the trailer's cost.
Leave a Comment 316 weeks ago


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