Commuting Mileage

[Burke]

T/P is treated as independent contractor by national company to deliver their items to several stores on a fixed route. TP goes to warehouse, picks up items, and delivers to outlying locations. Does not have an office, home or otherwise for this endeavor. Has detailed mileage log, and trip sheets documenting everything on contemporaneous basis. Is trip to warehouse commuting? Having a difference of opinion here.

[Bert73]

I can see why there is an opinion difference. The way the Tax code was written was to say one thing and then put "But ifs" in.

My opinion is that it is not considered commuting, if this was an employee it would with out a doubt be commuting. I know that the NO home office is where the difference in opinion is coming to play, but I think this is not an issue in this case.
He is an independent contractor that is getting in his car to pick items that will produce income for his business. How is this any different than Susie driving to the office supply store to pick up supplies?

[ChEAr$]

The warehouse is his focal point of business, hence first trip there in morning is
drive time, i.e. commute.
Now then, what about from last stop of the day back to his house?

[Gretel]

Since he doesn't have a regular place of biz the first trip of the day (Warehouse) and the last trip (from last stop home) is considered commuting. There is no difference if this is an employee or self-employed person.

[S T]

Independent

so since t/p does not "have" or "claim" home office - no mileage?

I am still trying to get these rules "imbedded" into my head?

Are there 'NO" clear cut rules for us to follow and on each and every scenario?

Can someone please map this for me? Very simplestic?

Wouldn't there just be a chart (maybe TB can provide one for us much like the Dependents and Qualified this or that)

If this then you get to claim, if this you don't get to claim!

Frustrated!

Sandy

[Bert73]

Tax Home

I guess what we really are talking about is where is his Tax Home?

Since he is only picking up supplies to carry on with his delivery schedule, I still do not see that this could be his tax home.
Publication 463 states that "If you do not have a regular or main place of business because of the nature of your business then your tax home may be the place where you normally live."

Am I grasping? I am all for someone changing my thinking on this.

[taxxcpa]

Commuting

As I understand it: unless you are working out of town overnight, the first business trip of the day and the last trip returning home is non-business. The first trip could be to your office or it could be from home to a customer/client and would be commuting whether you are self-employed or an employee. The last trip home would be commuting. All the rest of the trips would be business mileage.

Once I heard that you could make your first business stop a trip to the Post Office if you have a P.O. box nearby, then return to the Post office to check the mail at the end of the day and claim all other travel as business. Technically, it might not pass the smell test if the box was rented for no good business reason.

[ChEAr$]

so since t/p does not "have" or "claim" home office - no mileage?

I am still trying to get these rules "imbedded" into my head?

Are there 'NO" clear cut rules for us to follow and on each and every scenario?

Can someone please map this for me? Very simplestic?

Wouldn't there just be a chart (maybe TB can provide one for us much like the Dependents and Qualified this or that)



Sandy

Rest assured, here is such a chart contained within publication 17 on page 186 of the
brand new edition which can be downloaded as pdf from irs.gov

[ChEAr$]

Another thing I like about tax season, is daily going to the bank ($$$!!!) on the way home
in the evening.

[BP.]

Can someone please map this for me? Very simplestic?

Wouldn't there just be a chart (maybe TB can provide one for us much like the Dependents and Qualified this or that)

Sandy

TTB for 2008 has the chart on p. 10-2.

[David1980]

if this was an employee it would with out a doubt be commuting.

This is one of the big tax misconceptions IMO. There's no difference in the rules for self employed versus employees. Yet I've known in real life many tax preparers who automatically assume self employed means that all miles are deductible.

[Bert73]

Commuting

As I understand it: unless you are working out of town overnight, the first business trip of the day and the last trip returning home is non-business. The first trip could be to your office or it could be from home to a customer/client and would be commuting whether you are self-employed or an employee. The last trip home would be commuting. All the rest of the trips would be business mileage.

Taxxcpa: I totally agree with the rules on commuting and transportation, I should have worded it a little different in my first comment on Contractor vs. Employee.

I have looked at the chart on Transportaion Expense before, and in this particular situation its vague.
I have never run into this situation, but I would like to be clear on this, just in case. Does anyone know of any examples or tax court findings that resemble this?

[FEDUKE404]

My vote is for commuting

This is one of those topics that can pretty well be debated all over the place. Does the guy technically have something like a "independent contractor office"? If so, plainly commuting.

Consider these independent contractors:

1) Mail person who drives to post office, sorts mail, and then delivers to customers on route. Everything deductible, or just the "deliveries" ?
2) Newspaper route person who goes to printer, picks up papers, and delivers to customers on route. Everything deductible, or just the "deliveries" ?

My personal opinion is that, if push comes to shove, in the situation cited by the original poster the first/last trips would be considered as commuting. The guy basically has a "job" to make deliveries for a company. (Others can discuss whether he might even be an employee.) Now, if he does the same thing daily for several businesses, the water gets quite murky.

And for those who use the trips to the bank half a block from home as a "business trip" I guess their creativity should be commended.

FE

[taxcraft]

Your in doubt.

When you are in doubt....play it safe of course. To and from home is commuting and job to job is business. Play it safe.