Mileage

[DTS]

I'm so sorry for posting this really stupid question on mileage. Way too tired and it's only February, so forgive the stupidity!

50% shareholder of s-corp works out of his home with his wife, but has a regular job 70 miles away. Works in the morning at home with his wife then takes off to the other job. Returns to home and more work for his business.

I say that mileage is deductible. Yea?

D

[rfk]

My Answer

D

Working from home to client equals mileage deduction. Going to work at his regular job and then back home is commuting miles, not deductible. Going to work (regular) and then to a client of regular job is deductible as employee business expense given 2% consideration.

Return from work to home based business to work does not equal deduction.

RFK

[Gary]

No Problem

Commuting to a regular job sure doesn't sound like a deduction to me.

I practice in the morning for my job with the band. Then I go to H&R Block to work during the day. When I return home, I practice some more. I don't think I can deduct mileage driving to the office.

[DTS]

Home-based business

The home-based business is a legitimate business that grosses considerably more than his W-2 income. Considering this and his office in home, I thought this would make this mileage deductible and just want to be sure.

D

[Gene V]

I think the mileage is deductible if the second job is in the same line of business.
I was at a seminar where the IRS spoke of this, they said they had a IRS agent who
was trying to deduct mileage from home to work at the Federal building, they disallowed
the mileage because her home business was completely unrelated to her work at the IRS office. They even gave some example where you could deduct the mileage.

[JG EA]

"Regular or main job to a second job is always deductible." Page 14, Pub 463.

"Second job: If you regularly work at two or more places in one day, whether or not
for the same employer, you can deduct your transportation expenses of getting from
one workplace to another. You cannot deduct your transportation costs between your
home and a second job on a day off from your main job."

So, I guess it would be how much of a main job their OIH is. I would also weigh time spent, money earned, and reasonableness.

[S T]

How to report deduction

I have a question, keeping continuity to the OP, assuming that the mileage is deductible from the OIH for S Corp to the 2nd job, that would be on a form 2106 tied to the W-2 wages for the 2nd job, as an employee business expense, correct?

How do you report the mileage for the 50% shareholder of the S Corp attributable to S Corp mileage? Shouldn't the corporation reimburse the mileage to the shareholder, and then the mileage or auto allowance is reported on the 1120S. Example: Shareholder leaves OIH for S corp business and incurs over the year 5,000 miles attributable to S corp business.

Do you use a second 2106 to report the Shareholder mileage if not reimbursed by S Corp.

Sandy

[Black Bart]

Not stupid, it's

I'm so sorry for posting this really stupid question on mileage. Way too tired and it's only February, so forgive the stupidity! 50% shareholder of s-corp works out of his home with his wife, but has a regular job 70 miles away. Works in the morning at home with his wife then takes off to the other job. Returns to home and more work for his business. I say that mileage is deductible. Yea? D

just that we can never seem to get this question resolved (or at least I can't). If you're like me, I want a simple yes or no but I'm not sure this issue has one. I hate to throw reams of info at you instead, but can't think of anything else -- do a search for the "Home Office and Mileage" thread by K J Judd (debating with others) on 2-25-06 and you'll see five pages of analysis (Bees Knees seems to have the best handle on it).

[Gretel]

I have a question, keeping continuity to the OP, assuming that the mileage is deductible from the OIH for S Corp to the 2nd job, that would be on a form 2106 tied to the W-2 wages for the 2nd job, as an employee business expense, correct?

How do you report the mileage for the 50% shareholder of the S Corp attributable to S Corp mileage? Shouldn't the corporation reimburse the mileage to the shareholder, and then the mileage or auto allowance is reported on the 1120S. Example: Shareholder leaves OIH for S corp business and incurs over the year 5,000 miles attributable to S corp business.

Do you use a second 2106 to report the Shareholder mileage if not reimbursed by S Corp.

Sandy

I would use a second 2106 if not reimbursed by S-Corp. But I also would do everything to convince S-Corp. that they better reimburse.

[DTS]

Mileage

Thank you all for your differing thoughts. Some yes, some no, some another 2106. So, as I'm still not sure, I will take a look at the discussion BB mentioned and see if I can get some add'l clarity on this subject.

D

[DTS]

...I hate to throw reams of info at you instead, but can't think of anything else -- do a search for the "Home Office and Mileage" thread by K J Judd (debating with others) on 2-25-06 and you'll see five pages of analysis (Bees Knees seems to have the best handle on it).

Bart,

I had the opportunity to read that long beast. My guy gets no deduction to the other job and back to the OIH.

Darn rules!

D