Instructions For Form 2106 - Employee Business Expenses

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gross income from the performing

If you were a rural mail carrier and

Your home is your principal place

arts, and

received an equipment maintenance

of business under section

allowance see the line 1 instructions.

280A(c)(1)(A) (for purposes of

4. Had adjusted gross income of

deducting expenses for business use

$16,000 or less before deducting

For more information on the

of your home) and the travel is to

expenses as a performing artist.

standard mileage rate and actual

another work location in the same

expenses, see Pub. 463.

To be treated as a qualified

trade or business, regardless of

performing artist, a married individual

Section A—General

whether that location is regular or

must also file a joint return, unless the

temporary and regardless of distance.

Information

individual and his or her spouse lived

Line 16. If you do not know the total

If you used two vehicles for business

apart for all of 2003. On a joint return,

actual miles you used your vehicle for

during the year, use a separate

requirements 1, 2, and 3 must be

commuting during the year, figure the

column in Sections A, C, and D for

figured separately for each spouse.

amount to enter on line 16 by

each vehicle. If you used more than

However, requirement 4 applies to

multiplying the number of days during

two vehicles, attach a statement

the combined adjusted gross income

the year that you used each vehicle

using the format in Sections A, C,

of both spouses.

for commuting by the average daily

and D.

If you were an individual with a

round trip commuting distance in

Line 11. Date placed in service is

disability and are claiming

miles. However, if you converted your

generally the date you first start using

impairment-related work expenses

vehicle during the year from personal

your vehicle. However, if you first

(defined below), enter the part of the

to business use (or vice versa), enter

start using your vehicle for personal

line 10 amount attributable to those

your commuting miles only for the

use and later convert it to business

expenses on Schedule A, line 27,

period you drove your vehicle for

use, the vehicle is treated as placed

instead of on Schedule A, line 20.

business.

in service on the date you started

Your impairment-related work

using it for business.

Section B—Standard

expenses are not subject to the 2%

Line 12. Enter the total number of

Mileage Rate

limit that applies to most other

miles you drove each vehicle during

employee business expenses.

You may be able to use the standard

2003. But if you converted your

mileage rate instead of actual

Impairment-related work

vehicle during the year from personal

expenses to figure the deductible

expenses are the allowable

to business use (or vice versa), enter

costs of operating a passenger car,

expenses of an individual with

the total miles for only the months

including a van, pickup, or panel

physical or mental disabilities for

you drove the vehicle for business.

truck.

attendant care at his or her place of

Line 13. Do not include commuting

If you want to use the standard

employment. They also include other

miles on this line; commuting miles

mileage rate for a vehicle you own,

expenses in connection with the

are not considered business miles.

you must do so in the first year you

place of employment that enable the

See the line 15 instructions for the

place your vehicle in service. In later

employee to work. See Pub. 463 for

definition of commuting.

years, you may deduct actual

more details.

Line 14. Divide line 13 by line 12 to

expenses instead, but you may not

figure your business use percentage.

use a depreciation method other than

Part II—Vehicle

However, if you converted your

straight line.

vehicle during the year from personal

Expenses

If you lease your vehicle, you may

to business use (or vice versa),

There are two methods for computing

use the standard mileage rate, but

multiply this percentage by the

vehicle expenses —the standard

only if you use the rate for the entire

number of months you drove the

mileage rate and the actual expense

lease period (except for the period, if

vehicle for business and divide the

method. You can use the standard

any, before January 1, 1998).

result by 12.

mileage rate for 2003 only if:

You may also deduct state and

Line 15. Enter your average daily

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You owned the vehicle and used

local personal property taxes. Enter

round trip commuting distance. If you

the standard mileage rate for the first

these taxes on Schedule A (Form

went to more than one work location,

year you placed the vehicle in service

1040), line 7.

figure the average.

If you are claiming the standard

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Generally, commuting is travel

You leased the vehicle and are

mileage rate for mileage driven in

between your home and a work

using the standard mileage rate for

more than one business activity, you

location. However, travel that meets

the entire lease period (except the

must figure the deduction for each

any of the following conditions is not

period, if any, before 1998).

business on a separate form or

commuting.

You cannot use actual expenses

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schedule (for example, Form 2106 or

You have at least one regular work

for a leased vehicle if you previously

Schedule C, C-EZ, E, or F).

location away from your home and

used the standard mileage rate for

the travel is to a temporary work

that vehicle.

Section C—Actual Expenses

location in the same trade or

If you have the option of using

business, regardless of the distance.

Line 23. Enter your total annual

either the standard mileage rate or

Generally, a temporary work location

expenses for gasoline, oil, repairs,

actual expense method, you should

is one where your employment is

insurance, tires, license plates, or

figure your expenses both ways to

expected to last 1 year or less. See

Instructions For Form 2106 - Employee Business Expenses - 2003 Page 4

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