I have a small tax prep firm operating from my home where I do a few returns, but the great majority of my tax prep work is done for another firm. I travel to the other location to interview the clients and do most of the tax preparation from my home using the other firm's computer remotely. The other firm makes my appointments and provides the clients. They call me when there are appointments scheduled. There are no regular hours. My pay is non-emplyee compensation. Is my travel to the other firm deductible miliage or commuting expense? In the past I have considered the miliage as a commuting expense and have not deducted it, but since gas prices have gotten so high ...
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It does not appear you have a principal place of business at home.Originally posted by jimenright View Post
Seems to me that you are more of a commuting employee rather than an independent contractor regarding your relation with the "firm."but the great majority of my tax prep work is done for another firm. I travel to the other location to interview the clients and do most of the tax preparation from my home using the other firm's computer remotely. The other firm makes my appointments and provides the clients. They call me when there are appointments scheduled. There are no regular hours. My pay is non-emplyee compensation. Is my travel to the other firm deductible miliage or commuting expense? In the past I have considered the miliage as a commuting expense and have not deducted it, but since gas prices have gotten so high ... -
Commuting
Yes Jim, this is commuting. In fact, it is commuting in the purest sense, with very little in your favor to attempt to call it something else. The firm you speak of is your "tax home." If some of the mileage could be diverted to clients premises this would create deductible mileage.
In fact, bad as I hate to bring this up, you may even be an employee. I only bring this up to suggest that you may change your arrangement with this firm such that you bear some risk, are paid on contract basis, etc. to thwart the IRS criteria preventing treatment as an independent contractor.
On the positive side, looks very much that you may qualify for office-in-home.Comment
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Commuting?
I provide my own training, use some of my own equipment, do most of tthe tax prep at home, do not have a regular wage but I am paid as I complete returns on a per return basis. I believe this shows that I am not an employee. The firm has no control of my activities other than scheduling interviews. My home office, though, is not used exclusively for business.Comment
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Mileage
It would seem you are more of an employee than an independant contractor. They do control how you work (schedule appointments, secure the clients, handle fee payment and return processing, choose and provide the software and VPN), when you work (again, by scheduling your appointments) and, to a certain extent, where you work. I would say that your own practice with a few returns is likely a schedule C but the firm work really should be W2. The government is cracking down on this, so be aware. I work for a business that controls nearly everything about how I do my job but has insisted their attorneys have decided I'm a 1099 contractor. I am attempting to persuade them otherwise, even though I like the advatages of including that income on my practice's 1120S."Congress has spoken to this issue through its audible silence."
Anyone ever notice they beat the daylights out of the definition of a child, but they don't spend much time at all defining "parent"?Comment
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