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"Tax Domicile"???????????

Discussion in 'Experienced Truckers' Advice' started by darkstaff, Mar 19, 2010.

  1. Mar 19, 2010 #1
    darkstaff

    darkstaff Bobtail Member

    39
    8
    Jul 6, 2007
    West central VA
    0
    Hey all. I've searched the forums, but can't seem to get any good info.

    I am soon to be divorced for the second time. Sucks, but saw it coming and hey, life goes on.

    What I specifically need to know (hopefully from those of you who do this) is what is this "tax domicile" that truckers are required to have if they live out of their truck and don't have a physical address? i.e. no rent, no mortgage, basically no roof over their head except the rig and hotels?

    In a few months, once the belongings are split and moved to storage, I will no longer have said roof over my head. My plan is to just drive, and when I need a break, I'll highlight to go "home" wherever, to visit mom, friends in other parts of the country, like that. For at least a year or two before I settle back down.

    I figure this will be easiest on my finances as my only bills will be storage ($80-$100 a month), cell service w/wireless internet ($130-$150 a month).......wow, as I'm writing this, I just had to pause and let it sink in that if I can do this, those will be my ONLY bills at this time! This could be good, as I can finally crawl out of debt AND save some cash!

    So, what do I need to do for our government to allow me to have a CDL in a state I don't actually "live" in? And will this cover/what will I need to cover tax requirements.

    It's going to be a couple of months before everything is finalized, but I am completely obsessive with covering my bum and having a plan in action before it truly begins.

    Thanks y'all in advance for any info.
     
    Last edited: Mar 19, 2010
    darkstaff, Mar 19, 2010
    darkstaff, Mar 19, 2010
    #1
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  3. Mar 19, 2010 #2
    wsyrob

    wsyrob Trucker Forum STAFF Staff Member

    5,769
    5,463
    Sep 14, 2007
    Winston Salem
    0
    I would think you will need a PO box somewhere for a mailing address. Maybe the same place you store your stuff.
     
    wsyrob, Mar 19, 2010
    wsyrob, Mar 19, 2010
    #2
  4. Mar 19, 2010 #3
    rich_t

    rich_t Road Train Member

    1,448
    85,405
    May 28, 2009
    United States
    0
    What state do you currently live in?
     
    rich_t, Mar 19, 2010
    rich_t, Mar 19, 2010
    #3
  5. Mar 19, 2010 #4
    Roadmedic

    Roadmedic Road Train Member

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    Apr 4, 2007
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    From the IRS website pub 17 link provided.


    http://www.irs.gov/publications/p17/ch26.html#en_US_publink1000173670

    If you do not have a regular or a main place of business or post of duty and there is no place where you regularly live, you are considered an itinerant (a transient) and your tax home is wherever you work. As an itinerant, you cannot claim a travel expense deduction because you are never considered to be traveling away from home.


    Factors used to determine tax home. If you do not have a regular or main place of business or work, use the following three factors to determine where your tax home is.
    1. You perform part of your business in the area of your main home and use that home for lodging while doing business in the area.
    2. You have living expenses at your main home that you duplicate because your business requires you to be away from that home.
    3. You have not abandoned the area in which both your historical place of lodging and your claimed main home are located; you have a member or members of your family living at your main home; or you often use that home for lodging.

    If you satisfy all three factors, your tax home is the home where you regularly live. If you satisfy only two factors, you may have a tax home depending on all the facts and circumstances. If you satisfy only one factor, you are an itinerant; your tax home is wherever you work and you cannot deduct travel expenses.
     
    Roadmedic, Mar 19, 2010
    Roadmedic, Mar 19, 2010
    #4
  7. Mar 19, 2010 #5
    lilillill

    lilillill Sarcasm... it's not just for breakfast

    5,642
    13,472
    Nov 7, 2007
    Possum Booger, Alabama
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    That settles it... I'm going to start renting one eighth inch square parcels of my land to "homeless truckers", lol. It'll be like a miniature trailer park... with mail service.
     
    lilillill, Mar 19, 2010
    lilillill, Mar 19, 2010
    #5
  8. Mar 19, 2010 #6
    Yatista

    Yatista Medium Load Member

    479
    206
    Jan 25, 2009
    Upstate New York
    0
    Also in Pub 17 it states that if you are assigned to a particular terminal of the company you work for that is your tax home. It goes on to state that when there you do not qualify for per diem.
     
    Yatista, Mar 19, 2010
    Yatista, Mar 19, 2010
    #6
  9. Mar 19, 2010 #7
    Roadmedic

    Roadmedic Road Train Member

    18,951
    8,981
    Apr 4, 2007
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    It is based on where you live. You can be assigned to a terminal, but in the OTR game, it is based on where they live.

    Terminals are for when they might have a home somewhere and then be assigned to a terminal in another city. Then they are taxed at the assigned location.

    When a home is not used, they are considered itinerant, no matter where a terminal is. You must be providing a home to live in order to be considered away from it.
     
    Roadmedic, Mar 19, 2010
    Roadmedic, Mar 19, 2010
    #7
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