purposes of this section 4.04, an employee or self-employed individual is in
the transportation industry only if the employee's or individual's work (a)
is of the type that directly involves moving people or goods by
barge, bus, ship,
train, or truck, and (b) regularly requires travel away from home which,
during any single trip away from home, usually involves travel to localities
with differing federal M&IE rates. For purposes of the preceding
sentence, a payor must determine that an employee or a group of employees is
in the transportation industry by using a method that is consistently
applied and in accordance with reasonable business practice."
Special Note to Locally Based
While the above definition of
"Transportation Industry Employees" includes traveling pilots, CFI's that
routinely work with students at local FBO's do not routinely qualify for
travel deductions. The reason - centers on the word "travel." To
"travel" for tax purposes means you are away from home long enough to
require you to stop for "rest or sleep." Merely going up for an hour
or two with a student pilot does not qualify you for travel expenses.
If your situation is different, please give us a call for a further
The same disqualification for
travel expenses also applies to local bus drivers working around a city.
These city bus drivers do not "travel" whereas a Greyhound bus driver going
between Chicago and Dallas is "traveling" because he needs to stop for "rest
or sleep" before returning home.
If you are still confused, just
give us a call.