Oh so smug

[JG EA]

Ok I really thought I was confident with miles. But a client, a sales rep, came in today and because the word "salesman" was not in TTB or at least I counln't find it, I'm reading all the other stuff on miles and now I'm in a confused panic.

Can I take his route miles? Some in town, some out. He keeps a careful log and gave me, total, business, and commuting. (He has an office he commutes to on some days.)

I'd appreciate any comments.

[joanmcq]

1st and last trip of the day are commuting. So he sees his first client. Home to client, commute. Goes to office, biz miles. Goes to another client, biz. Goes home, commute. Out of town, out of metropolitan area. biz I think.

[S T]

What is Metropolitan Area

There has been several posts now on biz mileage, commuting, temporary job, and metroplitan area. Employee and self employed

How do we apply the acceptable mileage for Metropolitan Area?

We have categories right?

Outside Sales W-2 - no business area to report to

Employees on W-2 form that report to more than one "regular" place of employment and sometimes have temporary jobs

Taxpayers that are self employed and have no job location and work from a Home Office?

Just when I think I understand, the rules are becoming confusing.

Sandy

[JG EA]

Thanks for responding so quickly. I also am questioning everything. But, these posts are helping.

Any thing else?

[S T]

I am sure there are more

JG,

With all of the posts now on all of the various mileage deductions, I think that we have a lot of questions.

So I guess we both will wait for replies and then ask more questions.

Does anyone have a chart similar to the dependent exemption, and who qualifies or not, depending on the circumstances?

Sandy

[joanmcq]

Well, SE working from home IS a job location; home. And all miles are deductible. I love my home office! Outside sales, the first trip is commuting.

[FEDUKE404]

Home office not always a panacea

Well, SE working from home IS a job location; home. And all miles are deductible. I love my home office! Outside sales, the first trip is commuting.

Yes, but I have two clients who both have OIH, both are realtors, and both "occasionally" stop by their company office. (We have some interesting conversations on deductible travel.)

BTW: Are you sure on the "outside sales" first stop issue? Client years ago traveled all over the state, on more or less a two-week revolving schedule. First/last stop was virtually never "in the local area." Fortunately, he had a company car!

FE

[RLymanC]

Miles

Hello...
If you have a "QUALIFIED" home office ALL business miles are deductable from the time you leave home.

If you are a salesman/woman, and have a territory to cover for a company located in Tim-Buck-Three, all miles are deductable from the time you leave home to cover your territory.

[Black Bart]

First,

...Can I take his route miles? Some in town, some out. He keeps a careful log and gave me, total, business, and commuting. (He has an office he commutes to on some days....

I think I'd pretty much let him have whatever he's got down because he is that rarest of all taxpayers -- a man with a log. Compare that to the usual suspects, e.g., "Uhhh, I guess I probably drove about, ummm, well, say (pick one) 10,000/ 20,000/ 30,000 miles last year, I imagine. You need records? Oh...well then, next year I'll start keepin' my gas tickets."

I agree it's hard to split the stuff up. Still, you've got a good starting point, so I guess I'd just ask him to take that log book (how wonderful to actually have one to work with/wave at an agent) and figure up the number of days he went to the office, subtract that back and forth commuting mileage, then knock off something for personal, and give him the rest as deductible business expense.

As far as what's the "metropolitan area," I haven't come across anybody/anything who can nail that down to my satisfaction. I've seen it stated as roughly fifty miles, but I tend to go with a more liberal interpretation; say like ten miles or, depending on circumstances, maybe anything outside the city limits (otherwise, many construction contractors working at various locations around the nearby countryside wouldn't get a dime off). This isn't writing/discovering any "law" or anything; just telling you what some others might be doing.

[Bees Knees]

Hello...
If you have a "QUALIFIED" home office ALL business miles are deductable from the time you leave home.

If you are a salesman/woman, and have a territory to cover for a company located in Tim-Buck-Three, all miles are deductable from the time you leave home to cover your territory.

Well, yes and no. All miles between the home office and a second job location in the same trade or business is deductible. (TTB, page 10-5)

If I work in my home office as a self employed tax preparer on Monday, and then go to Wal-Mart to say hi and smile at everyone walking in the door on Tuesday, I can’t deduct those miles against my Schedule C tax preparation business, because smiling at people at Wal-Mart is not in the same trade or business as tax preparation.

Maybe I could argue job to job miles on Form 2106 as an employee of Wal-Mart if I argue I worked in my home office a little bit prior to going or after coming back from my W-2 Wal-Mart job, but we all know those miles are virtually worthless.

[joanmcq]

I have a QUALIFIED home office, and all the trips to do work are deductible, like delivering tax returns or picking up office supplies. However, I also have a job in the same line of work (tax). I only take miles if I actually go up to the office before going to work, or work at my biz after coming home from work. (One tax season I had two outside jobs, but there wasn't too many miles in between them) During tax season, its often both.

[Koss]

If I work in my home office as a self employed tax preparer on Monday, and then go to Wal-Mart to say hi and smile at everyone walking in the door on Tuesday, I can’t deduct those miles against my Schedule C tax preparation business, because smiling at people at Wal-Mart is not in the same trade or business as tax preparation.

Bees, you can solve this problem altogether, and eliminate the mileage, if you just go to work for H & R Block.

Block has offices at kiosks inside Wal-Mart.

So you can just clock out at Block, put on the blue vest, and clock in at Wal-Mart...

ROFLMAO...

Burton M. Koss
koss@usakoss.net

[Kram BergGold]

Starting point

You have to determine if he has a regular place of work. If he does all mileage except from home to regular place of work and regular place of work to home are deductible. If he does not have a regular place of work then you get into all the other possibilites.

[FEDUKE404]

Otoh

Bees, you can solve this problem altogether, and eliminate the mileage, if you just go to work for H & R Block.

Block has offices at kiosks inside Wal-Mart.

So you can just clock out at Block, put on the blue vest, and clock in at Wal-Mart...


Burton M. Koss

I think I might just prefer to pay the taxes instead. At least it's not as bad as the "old days" in the Sears stores, from what I hear. (Hated those doggone cash registers and "the mall is closing now" stuff!)

FE

[JG EA]

JG,

With all of the posts now on all of the various mileage deductions, I think that we have a lot of questions.

So I guess we both will wait for replies and then ask more questions.

Does anyone have a chart similar to the dependent exemption, and who qualifies or not, depending on the circumstances?

Sandy

I always get like this at the beginning of tax season. I forgot about some basics like "visiting customers". Thanks again!

PS: The CFS flowchart is pretty good. Very simple but it's a good thinking tool.