mileage question

[nwtaxlady]

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]

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.

[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

[kathyc2]

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.

[Gene V]

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.

[MDEA]

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.

[taxea]

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.

[nwtaxlady]

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.

[spanel]

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

[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.

[spanel]

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

[TAXNJ]

At least your

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.

[nwtaxlady]

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!