Discussion:Self employed, Home office mile credit

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Discussion Forum Index --> Tax Questions --> Self employed, Home office mile credit


Jcms (talk|edits) said:

6 March 2006
A self employed client ( Schedule C ) workes out of his home. Where does credit start when driving to/from clients.

Can credit for miles driving from the home office to the first client location?

Can credit for miles driving home from the last client location to the home office?

What reference?

thanks

Klesher (talk|edits) said:

6 March 2006
yes take mileage from home to first job - taxpayer's office is home

Jcms (talk|edits) said:

6 March 2006
Do you have a reference?

Bean (talk|edits) said:

6 March 2006
Try Publ.334 Tax Guides for Small Businesses (Sch. C)

Riley2 (talk|edits) said:

6 March 2006
If the residence is the principal place of business, as defined in Sec. 280A, then the first mile out of the driveway is deductible. See Revenue Ruling 99-7.

Jdugancpa (talk|edits) said:

6 March 2006
If you do not qualify for home office deduction, you may get a different result. I.e., home to first business stop within metropolitan area and last business stop to home will be a commute if you have no permanent place of employment, or would be deductible if you have a permanent work location away from home..

Riley2 (talk|edits) said:

6 March 2006
It is not enough to qualify for the home office deduction. The residence must actually be the principal place of business.

Skhyatt (talk|edits) said:

7 March 2006
Let's say your home IS your principal place of business. But because it doesn't satisfy the exclusive use test, you can't take the home office deductions. Is all mileage, including first trip and last trip deductible?

ScottCPA (talk|edits) said:

7 March 2006
It does seem like there is a misconception that anyone that is self employed just gets to deduct any mileage they have for that business. Including mileage from home to clients/customers locations. But it sounds like even self employed are limited by the "commuting" rule and therefore little mileage would be deductible (just driving between clients, etc.). I have a 1099 person that basically works every day at the client's business location. Drives there to work and back everyday (approx 35mi). No other clients. They receive 1099 income. They don't really qualify for any home office deduction. It's sounding like this mileage is non deductible commuting mileage??

Jdugancpa (talk|edits) said:

7 March 2006
Sounds like the client's business location is his principal place of business. If so, then travel from home to that location and back home again is a commute, and not deductible.

Lalva (talk|edits) said:

16 March 2009
My client is in a similar position as Scott's, but with the difference that he has a home office where he performs some of the work. He is a photographer that performs the work in the client's location. Since he has a home office, does the mileage between his home office to his client location is considered commuting mileage?

He also does some work for another client, and also go to different locations to take pictures for business purpose.

Thank you!

RoyDaleOne (talk|edits) said:

16 March 2009
REV. RUL. 54-147

The more important factors to be considered in making a factual determination regarding the location of the taxpayer's principal place of business or tax "home" are the total time ordinarily spent by the taxpayer at each of his business posts, the degree of business activity at each such post, and whether the financial return in respect of each post is significant or insignificant. No one factor is determinative, although the point last mentioned should be given great weight in cases where all services are performed as an "employee"...

Markey v. Commissioner, KTC 1974-13 (6th Cir. 1974)

Supertaxnerd (talk|edits) said:

20 January 2010
I don't have a client with this particular issue, but I was just wondering...

If someone is a self-employed individual and also has a job, if we've determined that his home is his principal place of business, he can deduct transportation from home to his other job, even if it's not temporary (due to the fact that it's not his principal place of business). But he can't deduct the cost of returning from that second job to his home (principal place of business), correct? Even though normally you could deduct costs of going from one business location to the next.

Also, let's say that his home isn't the principal place of business, but the other job is, I know he can't deduct transportation from home to the principal place of business, but can he deduct his transportation expense from going to one work location to the next even if it is his home (even if not temporary)?

This seems like it should be really easy to answer, but I think I'm missing something. Going to bed at 3am and just now sipping my first cup of coffee doesn't help either. Any insight you can provide would be great.

Death&Taxes (talk|edits) said:

20 January 2010
"(3) If a taxpayer’s residence is the taxpayer’s principal place of business within the meaning of § 280A(c)(1)(A), the taxpayer may deduct daily transportation expenses incurred in going between the residence and another work location in the same trade or business, regardless of whether the other work location is regular or temporary and regardless of the distance."

Make of that what you will; it is from Rev. Rul. 99-7, which in itself gives a good history of commuting rulings etc.

If his only drive was between his job and home, I don't see how having a business there makes it more than a commute.

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