Home office & mileage

[Bees Knees]

where did you find these prop. regs.?

I use Kleinrock's Tax Expert CD for all the codes, regs, proposed regs, revenue rulings, etc.

does it tie the mileage deduction to the home office deduction? Been looking and can't find it. Maybe I'm just too tired.

The code does say anthing about that. The tie together bit is done in the Revenue Rulings on the subject.

[Unregistered]

Along the same lines

I just started my side business as an IT consultant, but I still have my full time job as a systems engineer. If my home is my principal place of business, and I use the home office exclusively for such, can I deduct the mileage between my home and my regular full job, and back home again?

[Possi]

is your home office

Is your home office your principle place of business for your full time job as a system's engineer? If not, no.

[Unregistered]

my home office

...is my principal place of business for my consulting business, which is set up as an LLC.

I was under the impression that any business related mileage from your home office would be deductible. Trips to the bank, the post office, lunches with prospective clients, etc. Wouldn't mileage to my full time job be deductible as well, if during - and throughout - the day while I'm there, I am talking to prospective clients during lunch, discussing business tactics with colleagues during breaks, training on IT equipment on my own time, etc, etc?

[Bees Knees]

Rev. Rul. 99-7, "Under what circumstances are daily transportation expenses incurred by
a taxpayer in going between the taxpayer's residence and a work location deductible under section 162(a) of the Internal Revenue Code?"

(1) A taxpayer may deduct daily transportation expenses incurred in
going between the taxpayer's residence and a temporary work location
outside the metropolitan area where the taxpayer lives and normally works.
However, unless paragraph (2) or (3) below applies, daily transportation
expenses incurred in going between the taxpayer's residence and a
temporary work location within that metropolitan area are nondeductible
commuting expenses.

(2) If a taxpayer has one or more regular work locations away from the
taxpayer's residence, the taxpayer may deduct daily transportation
expenses incurred in going between the taxpayer's residence and a
temporary work location in the same trade or business, regardless of the
distance. (The Service will continue not to follow the Walker decision.)

(3) If a taxpayer's residence is the taxpayer's principal place of
business within the meaning of section 280A(c)(1)(A), the taxpayer may
deduct daily transportation expenses incurred in going between the
residence and another work location in the same trade or business,
regardless of whether the other work location is regular or temporary and
regardless of the distance."

[Unregistered]

(3) If a taxpayer's residence is the taxpayer's principal place of
business within the meaning of section 280A(c)(1)(A), the taxpayer may
deduct daily transportation expenses incurred in going between the
residence and another work location in the same trade or business,
regardless of whether the other work location is regular or temporary and
regardless of the distance."

Paragraph (3) of Rev. Rul. 99-7 is what I'm basing my assumptions on.

I'm *assuming* that because my consulting business and my full-time job are in the the same trade or business, that I can deduct these everyday miles between the two offices. Or am I misinterpreting the phrase, "same trade or business"?

If this mileage is indeed deductible, it should be reported on the schedule C, and NOT the schedule A, correct?

[Bees Knees]

The same trade or business does not have to be for the same employer, or the same exact job. So yes, the mileage between the two would be deductible.

As to deducting it on Schedule A or C, you would deduct it on the Schedule where you are driving to.

For example, if you are driving from your W-2 job to your self-employment job, then yes, you would deduct the mileage on Schedule C. But if you were driving from your self employment job to your W-2 job, then you would deduct the mileage on Form 2106 which flows to the Schedule A.