Hauling tools and machinery

[RNuse09]

Hello,

I have a new client that has been taking mileage for going to work. The argument was that his job starts when he gets in his truck because he is hauling tools and machinery. He has been in the construction field his whole life and has always taken this deduction which adds up to about a 13,000 dollar deduction. I know the taxbook says that this deduction is not allowed. I did graduate about 2 years ago and remember being told that this was a viable deduction based on a court case. Anyone have any opinions on this? Thanks for your time, I know everyone's time is very valuable this time of year.

[taxmandan]

TheIRS has been clear that this is not an allowable deduction. TTB is correct, this is another of the persistent urban myths that contractors hear about at the Lowe's desk from other contractors. Just because he has gotten away with it in previous years doesn't make it right nor acceptable for you a continue the deduction.

[bgiez]

Don't know about a court case, but...

p 181 in Pub 17, addresses the issue in chapter 26 "Car Expenses and Other Employee Business Expenses." It states:

"Hauling tools or instruments. Hauling tools or instruments in you car while commuting to and from work does not make your car expenses deductible. However, you can deduct any additional costs you have for haurling tools or instruments (such as for renting a trailer you tow with your car)."

This, or course, assumes your principal place of employment is not your home.

[FEDUKE404]

Definite NO

This guy is an audit waiting to happen.

Either do it the correct way (he won't like it) or show him the door.

(At least he did not ask you about putting a magnetic sign on his car, calling it "advertising," and then deducting all of his miles. )

FE

[dsi]

Agree with the others...hauling tools in your vehicle gets you the same deduction as me hauling my briefcase!

[BP.]

p 181 in Pub 17, addresses the issue in chapter 26 "Car Expenses and Other Employee Business Expenses."

Thanks for this helpful reference that I can show to the people who ask this question every now and then.