Discussion:Self Employed Vehicle Expense
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Discussion Forum Index --> Basic Tax Questions --> Self Employed Vehicle Expense
Discussion Forum Index --> Tax Questions --> Self Employed Vehicle Expense
| 27 June 2008 | |
| We have had alot of discussions on this topic and although at times it appears very clear as to the answer some situations appear as clear as mud. Facts: Client Self-Employed(Construction) / does not use his home as an office nor does he have an office elsewhere / Exclusively works within 40 miles of his home at different job sites and never travels overnite /on occasion may leave job site to go to lumber yard for supplies. I assume all job related vehicle expenses would be deductible either actual or standard whichever he chooses. | |
| 27 June 2008 | |
| I don't see how your fact pattern is any different than the other discussions we have already had. | |
| 29 June 2008 | |
| Based on the facts you provided the transportation expenses are non deductible.
However if he is self employed presumably he engages in contract proposals ,invoicing ,meeting clients,phone calls to vendors, etc . Where does all this activity take place ? If it all takes place at clients home then once again it is my understanding that that all transportation is non-deductible. However if a significant amount of this work is done at his home then there is a good chance that the home would be a qualifying office and you could deduct the transportation expenses (actual or standard ); See IRS Publication 463 page 15 example No. 2 | |
Death&Taxes (talk|edits) said: | 30 June 2008 |
| Do a search on "Principal Place of Business." Here is one Discussion: Auto expense from home which goes into this matter quite thoroughly. If we define 'principal place of business' the way the Court did in Soliman, it would be hard to shoehorn the home into being that place. I recognize that Soliman has been 'reversed' by Congress, but more for the deductibility of the home office, not on the definition of principal place of business. | |
| 30 June 2008 | |
| In an audit last year the examiner wanted to deny a % of our truck expenses for commuting even though the client had an office-in-home that was claimed on the return. I had to argue quite a bit and threaten to go to the supervisor to get 100% of what we had claimed. | |
