In Actor Speak

Deductions for transportation for classes, auditions and other job search activities are deductible but you MUST be able to document the miles and/or expenses incurred for the write-off.

For classes or auditions, you should be able to prove that you attended by noting the event in your schedule of activities.  You must also document the cost of the trip or the miles involved, both coming and going.  

Obviously if you attend classes at the same location you don't have to write down the mileage for each trip ASSUMING that your starting point (generally your home) and your ending location (the sight of the classes) is also the same for each trip.

The same can be said for audition locations which are often the same week to week, or month to month.

The form of this documentation can vary from person to person whether it is a large calendar you write all of your activities on, a day to day planner or, in one case at an audit, the person brought in all of the slips of paper that they wrote their auditions down on when they received the call from their agent.

At this time we don't have an answer for the use of Personal Digital Assistants.  In the past the IRS has refused to accept computerized documentation as this information can be changed quite easily in later years (when audited.) When we receive some greater understanding on this issue we will post it here.   

Bear in mind, that for almost any item or event that you are claiming as a deduction, there is usually some degree of travel expense involved.  Too often we forget to write down trips to the office supply store to buy printer cartridges or paper for our resumes.  If the trip was for business purposes, it too is deductible.

But only if you write it down and keep the receipts!

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In the Words of the IRS:

"Travel and transportation expenses can be incurred in all of the profit generating activities for taxpayers in the entertainment industry. In determining the allowable deduction, it is necessary to distinguish between travel and transportation expenses. Travel expense generally includes expenses while away from home overnight. Transportation is generally the expense of locomotion within the general vicinity of the taxpayer's regular place of business."

Transportation

As with any other business, some taxpayers may incur deductible transportation expenses in the course of their business. The same substantiation rules apply to people in the entertainment industry as to any other taxpayers.

Commuting expense is not deductible even though it is ordinary and necessary. Even where the taxpayer goes back and forth from home more than once a day (as an actor might have to do), the expense of the commute does not become deductible. 

The exception to this rule is where the taxpayer's home is her or his principal place of business; in that case travel to and from home would no longer be "commuting" and could thus be deductible. (But see office in the home to determine if the taxpayer qualifies.)

Many taxpayers in the entertainment industry have many short-term jobs. The usual claim is that these are all temporary jobs; and therefore, "temporary job sites." When the taxpayer has no "regular business location" the entire local commuting area is his or her regular business location and transportation to any place in that area is commuting.

Taxpayers who must travel from one business location to another are entitled to the expense of going between job sites. Producers often provide a bus for cast and crew to nearby locations but some may prefer to drive themselves. Where an employer has made a benefit available to the taxpayer, but the taxpayer prefers to use his or her own, there is no deduction. 

Taxpayers in the entertainment industry are entitled to a deduction for mileage incurred while searching for employment. They must comply with the rules in order to qualify for the deduction. This is especially true for travel incurred while trying to promote one's self. The use of historical success will also be of importance when considering the allowance of such travel. The taxpayer must prove that in the past there has been a measure of success while traveling to promote himself or herself. A narrative may be a good start.

Auditions are a common reason taxpayers who perform in the entertainment industry incur travel and mileage. These expenses should be timely documented. Sign-in sheets are commonly used at auditions. This should be requested if there is some doubt as to the legitimacy of the documentation presented. Usually if this expense is well documented, the taxpayer is entitled to the deduction.

Continuing education is common in the entertainment industry. Taxpayers are usually allowed applicable car expenses for qualified education expenses.

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