can I deduct my mileage

[Pjw350]

I am a union sheet metal worker. I travel to all different job sites ranging from 1 day to 2-3 month job lengths. My travel mileage per day is about 80-90 round trip to these job sites. Would this qualify as a temporary place of work? Can I claim these miles. I drove about 25k last year. Most people I work with claim their mileage. I have a calender with the places that I worked and the mileage it is from my house to the job. Or do I need to take the jobsite to our shop? Thanks

Thanks Phil

[JSLATER]

This is from IRS Publication 17 page 176.

No regular place of work. If you have no
regular place of work but ordinarily work in the
metropolitan area where you live, you can deduct
daily transportation costs between home
and a temporary work site outside that metropolitan
area.
Generally, a metropolitan area includes the
area within the city limits and the suburbs that
are considered part of that metropolitan area.
You cannot deduct daily transportation costs
between your home and temporary work sites
within your metropolitan area. These are nondeductible
commuting expenses.

This sounds like it covers your situation.

[Pjw350]

can i deduct my mileage?

So I live about 35 miles sw of chicago. My work is mainly in the nw burbs about 45 miles from chicago. So this would still be in my metropolitan area correct. Some people in my company take the mileage from the shop to the job and calculate that. If they did audit me then could the fine me or just ask for the monies back?

[BOB W]

So I live about 35 miles sw of chicago. My work is mainly in the nw burbs about 45 miles from chicago. So this would still be in my metropolitan area correct. Some people in my company take the mileage from the shop to the job and calculate that. If they did audit me then could the fine me or just ask for the monies back?

Both, and with the new Legislation ordered by Congress, the penalties could be substantial.

Now if you work at 2 different locations in the same day, the mileage between those two locations can be business mileage. I have heard, but not offically read, that going to a shapeup location does not count as a first location. Maybe someone on this board will verify.

[Pjw350]

on my e file the questions go as this

Number of miles driven in your job duties:
Number of miles driven to commute to and from your main place of work:
Your average daily round trip commuting distance:

With these questions I have no main place of work so wouldnt my mileage fall under the job duties question?

[Koss]

Theory

So I live about 35 miles sw of chicago. My work is mainly in the nw burbs about 45 miles from chicago. So this would still be in my metropolitan area correct. Some people in my company take the mileage from the shop to the job and calculate that. If they did audit me then could the fine me or just ask for the monies back?

I don't know if this will make you feel any better, but there is a fairly straightforward explanation as to why the IRS is taking the position that your mileage is not deductible within the metropolitan area.

I realize that your perception is that these are temporary job sites, and I'm not saying that they are not temporary. But the trip is still local, and the trip is from your house directly to the job site. So whether it's temporary or not, it still appears to be local commuting.

Suppose I work as a trainer, for, say, a franchise guy who owns six different McDonald's restaurants, all within the same metropolitan area. I go to each restaurant and train managers and crew leaders, or something like that. Maybe I double as an HR guy and accountant, and do payroll and cash drawer audits.

So on Tuesdays, I go to Restaurant #1, and on Wednesdays, I go to Restaurant #4, and on Fridays...

Well, you get my point. It really doesn't matter whether I'm a grill cook, sheet metal worker, or HR director. I'm still commuting from my house to my worksite. My worksite just happens to be a different location every day. Commuting to the place you work, within your metro area, is not deductible, whether the location is permanent, temporary, or rotating.

Now, if I had to travel between the restaurants, during the day, as part of my job...

That's deductible mileage.

Burton M. Koss
koss@usakoss.net

[Koss]

Typing at the same time

on my e file the questions go as this

Number of miles driven in your job duties:
Number of miles driven to commute to and from your main place of work:
Your average daily round trip commuting distance:

With these questions I have no main place of work so wouldnt my mileage fall under the job duties question?

You were typing this question as I was typing my explanation above...

The way the IRS sees things, all of your miles are commuting from your house to your workplace. The location of your workplace just happens to change from time to time. The cost of commuting is not deductible.

Burton M. Koss
koss@usakoss.net

[Pjw350]

http://www.irs.gov/pub/irs-pdf/p463.pdf

look at page 14 under the transportaion heading. The 4th dot says

Getting from your home to a temporary workplace when you have one or more regular places of work. These temporary workplaces can be either within the area of your tax home or outside that area.

Then under Temporary work location it says

If you have one or more regular work locations away from your home and you commute to a temporary work location in the same trade or buisness, you can deduct the expenses of the daily round trip transportation between your home and the temporary location, regardless of location.

[veritas]

Where is your

"regular" place of work?

[Pjw350]

"regular" place of work?

My regular place of work could be considered the shop I guess. I am occasionally in there working but mostly in the field at different locations.

[veritas]

friend

I think you have answered you own question.

[Kram BergGold]

metropolitan area

There was a recent court case over metropolitan area. This one was decided on a strict mileage calculation. I think the judge used 50mi. In our city, a commute of 45 miles from south of the city to north would take 1.5 to 2 hours at rush hour. To me this would qualify as out of the metropolitan area. No one does this commute on a regular basis. You have to look at what is normal for your area. Years ago a judge decided that a taxpayer going from Newark NJ to New York City was leaving his metropolitan area, this is praobalby a 15 mile drive but takes forever in traffic. You have to look at all the facts and circumstances.

[Pjw350]

It seems like a gray subject. Ive knows of quite a few guys in my trade that deduct the miles and noone has gotten audited. On average im in the car probably an hour but it can get up to 1.5 to 2 fast with traffic.

[mblatour]

in a similar boat...

I'm a tax preparer and my husband is also a union sheet metal worker in MN. This question comes up all the time. When I first began preparing taxes 3 years ago, I researched this to no end. I kept coming up with conflicting answers. Many of my husband's co-workers travel over 100 miles each way each and every day to get to their temporary job locations. Many of them have found tax preparers who are willing to deduct their upwards of 25,000 miles each year. Is it right? Maybe, maybe not. I say not. Although they might go to the shop in town every now and again, it is NOT their regular place of work. A lot of the temporary job sites are in other towns that might be far away from their homes, but they choose to work these jobs because the pay is good. In my opinion, they are commuting just like the rest of us. We live 15 miles from town (where the shop is located) but my husband drives to many job sitest that are far away. I don't believe he can deduct his commuting miles to the jobsite. Now once at the jobsite, if he leaves and runs to a supplier to pick up tools or materials, or he goes back to the shop to bend up some metal, he can deduct that mileage as it is his second stop of the day. His miles back home would then again be considered commuting.

The question you have to ask yourself is.. is it worth trying to defend yourself in the event of an audit. And as BOB W said, the penalties could be substantial (on top of the tax you would have owed). If you're a gambling man, I say go for it. Plenty of others do. Not me.

[FEDUKE404]

Rolling the audit dice

I tend to agree with mblatour, especially since although she might have a vested interest in bending the rules she has chosen not to do so.

MOST folks who review the tax regulations will take the approach the described travel is commuting. Those who are aggressive may go for business travel, but these are the same folks who might suggest to "stop by the ATM to check their balance" on the way to/from work, or to carry tools in their trunk, or to visit a union shop first/last. The only possible out is that there may be a perceived difference between a 100-mile trip to work in San Francisco vs the same in Red Oak, Iowa.

Although Pjw350 states he "knows of quite a few guys in my trade that deduct the miles and no one has gotten audited," that carries little weight if the IRS checks his return. (Rest assured the IRS has heard each of these "explanations" previously.) These same guys may even be claiming meals, which is a different topic.

Assuming Pjw350 is an employee, a review of page two of Form 2106 might be wise to view the information the IRS requests for reporting business travel. If Pjw350 does not itemize deductions, or his total business expenses do not exceed 2% of adjusted gross income, the point is moot anyway.

FE