Discussion:Business Mileage or Commuting
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Discussion Forum Index --> Basic Tax Questions --> Business Mileage or Commuting
Discussion Forum Index --> Tax Questions --> Business Mileage or Commuting
| 31 December 2007 | |
| A Scheudule C taxpayer uses his home as his office and has no other business location. He is an independent claims adjuster and he travels by automobile to investigate various insurance assignments. The IRS agent (his Sch C is being audited) says his first and last trip of the day are commuting mileage. I disagree. Who is correct? | |
| 31 December 2007 | |
| It should be based upon Rev. Rul. 99-7.
From the Rev. Ruling: "(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. " If he meets Sec. 280A(c)(1)(A), I vote for you. I would guess he meets this based upon administrative type duties. | |
Death&Taxes (talk|edits) said: | 31 December 2007 |
| My former boss won this matter in a TCM case almost 20 years ago, and for the same occupation. I don't have a cite, but the 'client' heard him make an appearance in a home office case and hired him in the lobby of the courthouse. I interviewed him....this was long before both 99-7 and Soliman, and I truly wondered if his place of business wasn't his car. At that time the test was more based on time spent, than record keeping function.
I agree with Solomon. | |
| 31 December 2007 | |
| Agree with both of the above. I had a similar situation in an audit but was able to eventually convince the auditor and prevail. But it took several attempts.
Happy new year everyone. Thank you all for contributing to this educational forum. Best of luck in the coming tax season! | |
| 13 January 2008 | |
| In the cases that were won, were the taxpayers claiming an office in the home deduction on their tax returns? | |
Death&Taxes (talk|edits) said: | 13 January 2008 |
| My guy was; that was what the audit was about and had he lost, he would have suffered a loss of some of his auto expense. At the conclusion of the case, before rendering a decision, the judge suggested settling 'out of court.' He, my boss and I and District Counsel went into a room in the court house and talked. Before IRS could talk, our guy said, "You guys dropped a similar audit three years prior, and I have another audit on this same issue going on for a later year. I'd rather hear what the judge says.' Judge handed down the decision in his favor.
PS: He thanked my boss and paid the bill after trial and we never saw him again. | |
Michaelstar (talk|edits) said: | 14 January 2008 |
| Business mileage | |
| 14 January 2008 | |
| Maryanna - Yes, there was on office in home deduction on the origianl return.
Many folks don't realize that often the real savings to having a legitimate office in home is the ability to reclassify what would otherwise be communting mileage into deductible mileage. | |
Donniecastleman (talk|edits) said: | 14 January 2008 |
| My thing is that I'm constantly going out of the house to do different things: Tax Preparation and Dropoff, Playing Bass, Singing Demos, Audio Engineering, and Stagehand calls. The "in the same trade or business" part could really kick my butt, but I also have commuting miles to a 1,000 hour a year job with a W-2 at the MGM, and all of my recordkeeping and administrative type stuff in my home office. | |
Donniecastleman (talk|edits) said: | 14 January 2008 |
| don't forget the stop by the shower and refrigerator! | |
