Satellite / Co-Terminal Transportation – Satellite/Co-Terminal only applies to bases that cover more than one airport. (e.g. NYC covers LGA, JFK, and EWR) Transportation from home to your base airport (company mailbox location) is not deductible; however, if you travel to a point beyond your base, then this portion of transportation is deductible.  Below are two examples, if you have any questions, please give us a call to further explain this deduction.

  • Example – your mailbox at LGA but your trip is out of JFK, the transportation from LGA to JFK and back is deductible.  This is usually a recognizable expense for commuters who fly into and out of one airport where their mailbox is and are required to fly a trip out of a different airport.
  • Non-Deductible Example – You live in Manhattan and have a flight out of JFK and your mailbox is at LGA, no portion of your trip is deductible unless you go to LGA first.  (Manhattan is between the two airports…you must travel to a point beyond your mailbox to qualify!)

Airport Parking – if you pay for parking at the airport – a “portion” of this expense is deductible as long as it is not reimbursed or offered for reimbursement by the airline.  To explain further, the IRS deems normal parking for a 9-5 job not to be deductible – every American is required to get to and from work and park with no allowed deduction.  When it goes “above and beyond” we have grounds for a deduction.  A business person going on a trip for 48 hours at the airport would get a deduction for their parking. The airport is your office – no deduction but you are on a “business” trip – deduction.  To pacify the IRS and generate a partial deduction for you, we take 2/3’s of the expense since technically the first 1/3rd, or 8 hours, is not deductible.  If you spend $30 on parking – your deduction would be $20 – $10 being disallowed for “normal” commuting expense.

Reserve Emergency Cab Fares – if you are on “Reserve” status, you may be required to arrive at the airport within 2hrs for call to duty.  You can deduct the cost of cab fares to meet this requirement when called. This is also true if you are called out with less time notice to make a trip.  If you can get to the airport faster – you get the trip – generating income to you and tax revenue to the IRS – if you can make money by it, the IRS will give you the deduction.