Oil Field Worker

[Gretel]

Oil Field Worker goes out of state to work in oil fields. Lives on camp and from there travels each day between 80 and 150 miles. Rig moves around every so often. Only expenses he has is the mileage between camp and the rig since tax home is the camp, right?

I always get confused again on this issue, no matter how hard I try. Every time when I think I got it, I am confused again with the next client. Any idea how to make it "click" in my mind?

[Snaggletooth]

ALLLL of it

Gabriele, I would take ALL of it. However, he should have a record of where the rig is and his nearest camp, and I would take a round trip minimum distance times the number of days the rig is in place. IRS would probably advise you differently and interpret the concept of "tax home" to their own evil ends, but there's little question that chasing an oil rig via work camps can hardly be called "commuting."

If he gets a W-2 instead of a 1099, the IRS is going to get back at least 2% of his salary before any deduction is allowed, and even more if the threshold for itemized deductions is not met. The deck is already stacked in their favor, so I wouldn't feel out-of-place at all for taking all of it.

Now to let you in on a little secret:

Bees and Armando really used to sing a duo with a 40s-50s style swing band:

"ALLLLL of me...Why not take ALLLLL of me..."

Black Bart bid $50 for Armando and tried to sell him to someone else to cut his losses.

[Gretel]

Rigs and more

Ron,

it looks like some of you guys have another little private board where you share secrets.

I am not sure I understand you correctly (besides I sometimes have problem understanding not so stiff english. Nothing wrong with that, but to understand some things I guess the american language must be your native language).

All of it meaning: Roundtrip MT-CO, plus all trips from camp (it's the same camp they go back to so I assumed the camp is his tax home), plus per diem for meals (he is paying his own).

May one of the great singers will provide authority to our conclusions.

[Bees Knees]

Look on page 9-7 in QF under No Tax Home rule and Transient Worker rule. It could be you have a transient worker in which case no deduction would be allowed. But if the oil field locations are always less than a year, and the taxpayer has a main business location that he goes back to from time to time in between field trips, then ALL of it would be deductible.

[Bees Knees]

Now to let you in on a little secret: Bees and Armando really used to sing a duo with a 40s-50s style swing band: "ALLLLL of me...Why not take ALLLLL of me..."

Armando only does 60's. He thinks he can sing Wooly Bully. His biggest fans are a group that rides a short bus to school every day.

I did the swing band thing back in college before I even met Armando.

[Unregistered]

We don't have enough info. How long does he work out of a particular camp? The camp may be his tax home similar to the tax home of a pilot being his home terminal. I would also ask and document in the client file this question. Does the employer provide transportation from the camp to the rigs? If so, and your client uses his own vehicle by choice, it's not deductible.

[Armando Beaujolais]

Armando only does 60's. He thinks he can sing Wooly Bully. His biggest fans are a group that rides a short bus to school every day.

I did the swing band thing back in college before I even met Armando.

Now if you see a short bus bouncing down the road with a bunch of kids in it yelling "Unos, dos, one two tres quatros!" you'll know what's going on.

[Unregistered]

Say Gabby,

Are you of German origin? Seems like you said so on a previous post way back on QF and I assume by "stiff" English you're talking about official English. If so, I'd like to ask: are the Germans really, as I've heard, super-punctual? I had a retired professional client who volunteered and donated his services for some charitable project in Mexico and he said they (the Mexicans) drove the German project administrators, who insisted on starting at seven sharp, crazy with their outlook of "manana is good enough."

No offense; just curious. I know you can't speak for the Mex guys, but I can't quite reconcile that story with those who work in the fields here, as they put out twice the labor as our local people for the same money. --------------Black Bart

[Gretel]

More info

The work camp he goes back to last over a year that's why I assumed this to be his tax home. The actual work on the rigs is always under a year and he has to provide his own transportation, I believe, but I will ask that question.

So since the mileage is between 80 and 120 each day I also assume it's out of his metropolitan area and he gets the deduction.

Anyone disagree?

[Gretel]

Black Bart

Are you of German origin? Seems like you said so on a previous post way back on QF and I assume by "stiff" English you're talking about official English. If so, I'd like to ask: are the Germans really, as I've heard, super-punctual? I had a retired professional client who volunteered and donated his services for some charitable project in Mexico and he said they (the Mexicans) drove the German project administrators, who insisted on starting at seven sharp, crazy with their outlook of "manana is good enough."

No offense; just curious. I know you can't speak for the Mex guys, but I can't quite reconcile that story with those who work in the fields here, as they put out twice the labor as our local people for the same money. --------------Black Bart

Yes, I mean “official” English. I have a hard time just being good enough at that and there are a lot of jokes I don’t understand.

Yes, I immigrated almost 10 years ago. In Germany it's the rule to be punctual and to remember your appointments. No doctor would call to remind you. Instead of being driven crazy it's better to adjust to where you are at. In the small community, where I live now, you can be happy if work from work men is done at all, and we are talking about weeks and month after the first appointment. Good opportunity to learn patience. Unthinkable to treat customers this way in Germany.

I better leave it at that, there are quite some differences but I am sure I will offend some people if I go on. Just one more thing: Some years ago I lived in a house in Virginia Beach where people from USA and Europe stayed for some weeks or months. As far as the cleaning etc. goes I always was able to tell from what side of the ocean someone originated.

Please don't call me "Gabby", I was Gabi for 35 years and then decided to own my full name, which is Gabriele. It's more responsibility though.

[Black Bart]

The Full (Monte) Gabriele.

Okay; sorry for the undue familiarity (about all I do around this board anymore is apologize).

Don't worry too much about offending Americans with regard to their work ethic. Although it's still alive and well in some camps, there are numerous groups who can't be insulted.

I have a client, an Indian (not American Indian), who was complaining the other day about American workers. He hired a girl who declared that she absolutely had to have a job and wanted desperately to work. So...he hired her. She worked one day and quit.

I asked him about the situation back home. He said, "Jobs are extremely difficult to find. No one ever quits a job there, no matter how terrible it it."

Actually, I sort of figured that Montana construction workers (like the Marlboro Man) would be hard workers. Guess, as Bob Vila once put it, "it's a problem throughout the industry."

[Gretel]

The Full Monty

It's a great movie. I laughed so much.

Well, you can't help it if you offend people and I don't think anybody should apologize for who they are. A different story is if you are upset and say something you later regret.

I DID NOT fell offended anyway. Enjoy your day.

[Black Bart]

Oil Field Worker

I got so caught up with the humor that I forgot about your original question. I agree with your conclusion that the camp is his tax home and that he's away from home when traveling from it to the jobs and therefore eligible for per diem auto expense, motels, etc. I have to admit that this always confuses me too. I don't ever get it to "click" in my mind
permanently.

I don't disagree with you and I would take the mileage for it, but the thing is, I can't find anything in IRS literature which specifically states the amount of miles that it takes to qualify a taxpayer as being "out of the metropolitan area." It seems like I saw something about it at one time, but checking the IRS books now, they don't mention even mention that phrase or any required amount. In fact, they seem to be avoiding any discussion of it at all. I can't find it in Publication 17 or others. Maybe it's because they prefer to let a court decide or they have had some unfavorable litigation experience with it.

[Black Bart]

"Out of the metropolitan area"

Anybody know how many miles or what this means?

[dmj4]

Whatever auditor wants

I really dislike all the open-ended, unclear wording that the IRS uses. I believe it is that way so an auditor can always come up with an adjustment, if needed, on an audit. I could go on and on, but I won't.

Of course, I am sour right now with my audit coming up. HA!