mileage question

Collapse
X
 
  • Time
  • Show
Clear All
new posts
  • nwtaxlady
    Senior Member
    • Sep 2009
    • 418

    #1

    mileage question

    Client is a personal fitness trainer and is self employed. He goes to one gym where he rents floor space to train his clients for competitions etc.
    He has a office in home to do his billings and paper work. Can he deduct mileage from home to gym? Or is it considered commuting?
    And can he deduct the office in home?
  • DaveinTexas
    Senior Member
    • Jan 2006
    • 731

    #2
    I say no to both

    The reason I say no to both the home office and the mileage is due to the requirements of the home office. The home office must be "used regularly and exclusively (1) as the principal place of your trade or business; (2) as a place of business that you use to meet or deal with patients, clients, or customers in the normal course of your trade or business..."

    It would be difficult to convince the IRS the home office is the place used reguarly and exclusively for his business as a personal trainer if he does not perform any income derived business there nor do his clients do not meet at his home to do their workouts.

    Given that, his drive to the gym (his principal place of business) would be non-deductible commuting.

    Now, have him transform his backyard into a fitness area (sand pit, ninja/cross-fit monkey bar contraption, pool for swimming laps, torture chamber, barbed wire, etc), then you might have a leg to stand on. He could easily convince the IRS his home is his principal place of business.
    Circular 230 Disclosure:

    Don't even think about using the information in this message!

    Comment

    • taxgirl
      Member
      • Nov 2013
      • 95

      #3
      The "principal place of business test" states the home office qualifies if the home is used exclusively and regularly for admin or management activities of the trade or business and there is no other fixed location.

      I say yes to both

      Comment

      • kathyc2
        Senior Member
        • Feb 2015
        • 1945

        #4
        Originally posted by taxgirl
        The "principal place of business test" states the home office qualifies if the home is used exclusively and regularly for admin or management activities of the trade or business and there is no other fixed location.

        I say yes to both
        Sounds very similar to Soliman case where it was not allowed.

        Comment

        • Gene V
          Senior Member
          • Jun 2005
          • 1057

          #5
          Originally posted by kathyc2
          Sounds very similar to Soliman case where it was not allowed.
          I understand that Congress's reaction to this decision was to amend Section 280A(c) in the Taxpayer Relief Act of 1997 so that a home office could meet the "principal place of business" test if it is the only fixed location where administrative or management activities are performed. This effectively nullified the Supreme Court's decision ruling in the Soliman case.

          Comment

          • MDEA
            Senior Member
            • Jun 2013
            • 189

            #6
            Milage question

            Had a trainer with exact same conditions. Won audit with letter from gym that there was no place for him to do his paperwork at the gym. He had a separate room for office in his home. Had pictures of home office. He was able to take both deductions.

            Comment

            • taxea
              Senior Member
              • Nov 2005
              • 4292

              #7
              Originally posted by DaveinTexas
              The reason I say no to both the home office and the mileage is due to the requirements of the home office. The home office must be "used regularly and exclusively (1) as the principal place of your trade or business; (2) as a place of business that you use to meet or deal with patients, clients, or customers in the normal course of your trade or business..."

              It would be difficult to convince the IRS the home office is the place used reguarly and exclusively for his business as a personal trainer if he does not perform any income derived business there nor do his clients do not meet at his home to do their workouts.

              Given that, his drive to the gym (his principal place of business) would be non-deductible commuting.

              Now, have him transform his backyard into a fitness area (sand pit, ninja/cross-fit monkey bar contraption, pool for swimming laps, torture chamber, barbed wire, etc), then you might have a leg to stand on. He could easily convince the IRS his home is his principal place of business.
              I disagree. If he does all his billing and sets up appointments from home then he can take OIH. He does not need to meet his clients there.
              Believe nothing you have not personally researched and verified.

              Comment

              • nwtaxlady
                Senior Member
                • Sep 2009
                • 418

                #8
                Originally posted by taxea
                I disagree. If he does all his billing and sets up appointments from home then he can take OIH. He does not need to meet his clients there.
                What about mileage to and from the gym? The gym is in another town. Total miles for the year going to and from gym is about 7,250 miles.

                Comment

                • spanel
                  Senior Member
                  • Oct 2008
                  • 845

                  #9
                  Originally posted by nwtaxlady
                  What about mileage to and from the gym? The gym is in another town. Total miles for the year going to and from gym is about 7,250 miles.
                  Same place of Work every day. No mileage back/forth.

                  Chris

                  Comment

                  • Gene V
                    Senior Member
                    • Jun 2005
                    • 1057

                    #10
                    Just quoting from TTB page 10-4

                    If an office in the home qualifies as a principal place of business, daily transportation costs between home and another work location in the same trade or business are deductible.

                    Comment

                    • spanel
                      Senior Member
                      • Oct 2008
                      • 845

                      #11
                      Originally posted by Gene V
                      Just quoting from TTB page 10-4

                      If an office in the home qualifies as a principal place of business, daily transportation costs between home and another work location in the same trade or business are deductible.
                      But is it really his principle place of business? No.. the Gym is, that's where he meets clients, etc.

                      Chris

                      Comment

                      • TAXNJ
                        Senior Member
                        • Jan 2007
                        • 2106

                        #12
                        At least your

                        Originally posted by Gene V
                        I understand that Congress's reaction to this decision was to amend Section 280A(c) in the Taxpayer Relief Act of 1997 so that a home office could meet the "principal place of business" test if it is the only fixed location where administrative or management activities are performed. This effectively nullified the Supreme Court's decision ruling in the Soliman case.
                        reply post provides references to Section 280A(c)(1)(C) and TTB page. Good reference to make a decision. Did not see any other reply posts citing references to the contrary.
                        Last edited by TAXNJ; 01-24-2018, 09:52 PM.
                        Always cite your source for support to defend your opinion

                        Comment

                        • nwtaxlady
                          Senior Member
                          • Sep 2009
                          • 418

                          #13
                          That is how I see it.... that he is commuting to work everyday. It would be different if he traveled from gym to gym but he does not. I consider it commuting since that is where he meets his clients.

                          Thanks everyone!

                          Comment

                          Working...