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Page 2 of 59 of Publication 463 17:36 - 21-JAN-2010 The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing. What’s New (such as the use of a qualified nonpersonal use asterisk must be included in the address.). (The*taxforms@irs.govYou can email us atqualifies as a working condition fringe benefit vehicle). Please put “Publications Comment” on the sub- Standard mileage rate. For 2009, the stan- A working condition fringe benefit is any ject line. Although we cannot respond individu- dard mileage rate for the cost of operating your property or service provided to you by your em- ally to each email, we do appreciate your car for business use is 55 cents per mile. ployer for which you could deduct the cost as an feedback and will consider your comments as Car expenses and use of the standard mile- employee business expense if you had paid for we revise our tax products. age rate are explained in chapter 4. it. Ordering forms and publications. Visit A qualified nonpersonal use vehicle is one Depreciation limits on cars, trucks, and that is not likely to be used more than minimally www.irs.gov/formspubs to download forms and vans. For 2009, the first-year limit on the total for personal purposes because of its design. publications, call 1-800-829-3676, or write to the section 179 deduction, special depreciation al- See Qualified nonpersonal use vehicles under address below and receive a response within 10 lowance, and depreciation deduction for most Actual Car Expenses in chapter 4. days after your request is received. cars remains $10,960 ($2,960 if you elect not to For information on how to report your car claim the special depreciation allowance). For expenses that your employer did not provide or Internal Revenue Service trucks and vans, the first-year limit has de- reimburse you for (such as when you pay for gas 1201 N. Mitsubishi Motorway creased to $11,060 ($3,060 if you elect not to and maintenance for a car your employer pro- Bloomington, IL 61705-6613 claim the special depreciation allowance). De- vides), see Vehicle Provided by Your Employer preciation limits are explained in chapter 4. in chapter 6. Tax questions. If you have a tax question, Who does not need to use this publication. check the information available on www.irs.gov Partnerships, corporations, trusts, and employ- or call 1-800-829-1040. We cannot answer tax Reminder expenses should refer to their tax form instruc- questions sent to either of the above addresses.ers who reimburse their employees for business tions and chapter 11 of Publication 535, Busi- Useful Items Photographs of missing children. The Inter- ness Expenses, for information on deducting You may want to see: nal Revenue Service is a proud partner with the travel, meals, and entertainment expenses. National Center for Missing and Exploited Chil- If you are an employee, you will not need to Publication dren. Photographs of missing children selected read this publication if all of the following are by the Center may appear in this publication on true. ❏ 225 Farmer’s Tax Guide pages that would otherwise be blank. You can help bring these children home by looking at the • You fully accounted to your employer for ❏ 529 Miscellaneous Deductions photographs and calling 1-800-THE-LOST your work-related expenses. ❏ 535 Business Expenses (1-800-843-5678) if you recognize a child. • You received full reimbursement for your ❏ 946 How To Depreciate Property expenses. ❏ 1542 Per Diem Rates • Your employer required you to return any Introduction excess reimbursement and you did so. Form (and Instructions) • There is no amount shown with a code “L” ❏ Schedule A (Form 1040) Itemized You may be able to deduct the ordinary and in box 12 of your Form W-2, Wage and Deductions necessary business-related expenses you have Tax Statement. for: ❏ Schedule C (Form 1040) Profit or Loss • Travel, need to show the expenses or the reimburse- From BusinessIf you meet all of these conditions, there is no • Entertainment, ments on your return. If you would like more ❏ Schedule C-EZ (Form 1040) Net Profit information on reimbursements and accounting From Business • Gifts, or to your employer, see chapter 6. ❏ Schedule F (Form 1040) Profit or Loss • Transportation. From Farming If you meet these conditions and your An ordinary expense is one that is common and TIP employer included reimbursements on ❏ 2106 Employee Business Expenses accepted in your trade or business. A necessary your Form W-2 in error, ask your em- ❏ 2106-EZ Unreimbursed Employee expense is one that is helpful and appropriate for ployer for a corrected Form W-2. Business Expenses your business. An expense does not have to be required to be considered necessary. Volunteers. If you perform services as a ❏ 4562 Depreciation and Amortization This publication explains: volunteer worker for a qualified charity, you may See chapter 7, How To Get Tax Help, for be able to deduct some of your costs as a information about getting these publications and • What expenses are deductible, charitable contribution. See Out-of-Pocket Ex- forms. • How to report them on your return, penses in Giving Services in Publication 526, Charitable Contributions, for information on the • What records you need to prove your ex- expenses you can deduct. penses, and Comments and suggestions. We welcome • How to treat any expense reimbursements your comments about this publication and your you may receive. suggestions for future editions. 1. You can write to us at the following address: Who should use this publication. You should read this publication if you are an em- Internal Revenue Service Travel ployee or a sole proprietor who has busi- Individual Forms and Publications Branch ness-related travel, entertainment, gift, or SE:W:CAR:MP:T:I transportation expenses. 1111 Constitution Ave. NW, IR-6526 If you temporarily travel away from your tax Users of employer-provided vehicles. If Washington, DC 20224 home, you can use this chapter to determine if an employer-provided vehicle was available for you have deductible travel expenses. your use, you received a fringe benefit. Gener- We respond to many letters by telephone. This chapter discusses: ally, your employer must include the value of the Therefore, it would be helpful if you would in- • Traveling away from home, use or availability in your income. However, clude your daytime phone number, including the there are exceptions if the use of the vehicle area code, in your correspondence. • Temporary assignment or job, and Page 2 Chapter 1 Travel