Deducting Auto Mileage for W2 Employee Who Has Received Employer Reimburesements

[Jiggers]

Client was audited 2 years ago on 2106 very high mileage. Similar situation with your client. He left his home every day and traveled to various locations in several counties to service the customers. It was more efficient to leave from his home than coming to the office and then back-tracking to the customers locations.

The company provided a letter that said he was required to do this.

The company required a weekly report showing his total miles each day. He submitted his fuel tickets and was reimbursed from them.

I prepared the 2106 using the irs mileage rate and deducted the fuel reimbursement.

The letter from the company was required. He also had to prove the odometer readings that he used on his weekly reports. He serviced his vehicle at the local Ford dealer every 3,000 miles and they provided a report showing the odometer readings at each oil service. Matched pretty close to the reports.

I also had to show the large territory that was covered. I copied the state map and colored in the counties that he was required to travel to. I also pointed out the mileage marks on the map so that the auditor in some other state could see that the distance was great.

No change on the audit.

I am saying that the mileage from the home may not be comuting. Will the company issue a letter saying that he is required to start from his home?

[Koss]

Mileage

I agree that the first 20 miles per day and the last 20 miles per day are not necessarily commuting miles. That's what the employer is calling them. But in reality, his commuting miles could be more or less than that amount on any given day.

My view is that each day, the drive from his home to the first store is commuting, and is not deductible. Same goes for the drive from the last store back to his house. In general, all of the miles in between would be deductible business miles, after accounting for the reimbursement.

Is there something about this scenario that I'm not getting? Does he drive 250 miles or something just to get to the first store??

BMK

[Steve Stang]

I have a client who works for a firm that services a regional grocery store chain with more than 70 stores throughout the Northeast. Client's tax home is Massachusetts. Client has to drive his personal vehicle to one or more of these stores each day from his home. He has no specific office he works from.

Employer reimburses Client based on a three-tiered cent per mile program. Client submits mileage to employer monthly. Employer does not reimburse for the first twenty miles per day and the last 20 miles per day - deemed 'commuting miles.' Reimbursements don't show up on W2.

In 2013 the Client was reimbursed for 7100+ miles and not for 6500+ 'commuting' miles.

In reading TTB 10-4 about business use of a vehicle, I note that travel visiting customer sites is deductible. And even though he may travel to the same stores over and over, I probably can't consider them 'temporary work locations.' In TTB 10-4 in mentions 'commuting' that is never deductible. But since the Client is not commuting in the sense of going to the employer's fixed location but visiting customer sites, I think it is deductible (at least the amount not reimbursed). I would say that the employer's use of the term 'commuting' is only for its records.

So, long way to ask, is it reasonable to deduct the non-reimbursed portion of his mileage on 2016? He's got other itemized deductions as well (mortgage, taxes, medical).