Got a client just landed a self employed job working at a fixed location but travels around this fixed location throughout the day. Would the commute to & from the fixed location be qualifying business miles?
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it depends
First, is this new job temporary. If not then driving to and from is only dedcutible if he has a home office.
Next, is this temporary job outside his metropolitan area. If yes commuting is deductible.
Next, If within his metropolitan area did he have a fixed location before taking this job. If yes then commuting is deductcible. -
History and current of this SE taxpayer
This is not a temp job. Outside of Metro area? He has a home office in Phoenix AZ city limits and travels to his location in Chandler AZ city limits.Originally posted by Kram BergGold View Post
Before taking this job, he was W-2 salary employee so this SE job is a first for him.Comment
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Appears you are good to go. If he has qualified home office all miles are deductible.Comment
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Big if......Comment
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I agree with Gretel, if he has a qualified home office, any travel from that location is deductible, can be HUGE!Originally posted by Gretel View PostComment
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You said not "temp" job, so it is a permanent position? And what is the "fixed location?" Since Chandler is more or less a suburb of Phoenix, sounds to me like commuting to and from. And also employee issues surface if this is his only job. Not enough details to determine how an auditor might view it.Originally posted by AZ-Tax View PostComment
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I would think thourogh research of the home office qualifications and being absolutely sure he meets these would take care of any questions an auditor might have.Comment
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Employee vs Employer
My client did sign an independent contractor agreement with the entity that is paying him and issuing him his 1099-misc. The agreement made rather clear there is NO employee employer relationship. I know that agreement does NOT clear him from any possible employee employer relationship but I would assume its helpful.Originally posted by Burke View PostComment
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The letter of self-determination is probably not relevant from an IRS perspective. However, an application of the 20 factor test would be. Apply the test, if it holds, add the letter, then look at the offie-in-the home. While the facts have not been presented, it may be we have an employee with non-deductible comuting expenses with a marginally ethical employer that knows work is hard to find that has come across an individual who is trying his best to support his family with not too many prospects out there.Comment
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Exactly my issue. I am thinking, "okay, has he been self-employed in this line of business for a while? Does he contract with other employers for this work he does? Does he have control over his hours and methods? etc, etc. An office in the home does not a self-employed person make. Not enough detail, as I said, to really make a judgement or an opinion on the commuting question.Comment
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