I do not have a normal place of work like an office. Normally, I go to one home then back to mine. Occasionally, I go from one home to another to another in an afternoon. If I'm able to deduct mileage, how do I document that?
2007-09-27 04:45:34 · 6 answers · asked by barscheeze 1 in Business & Finance ➔ Taxes ➔ United States
The firm to which I am contracted has an office, but I almost never go there. Might that qualify as my office so I could deduct my mileage to the first client and from the last one?
2007-09-27 13:00:57 · update #1
Unless you have a QUALIFIED home office, the mileage from your home to first client and from last client to home is commuting mileage and not deductible.
2007-09-27 08:01:11 · answer #1 · answered by Mark S 5 · 0⤊ 0⤋
All mileage to from home to your clients, between clients, and back home from a client is deductible.
You may want to have a calendar showing all your appointments, and then next to each appointment write down the mileage you had to get to that appointment, or get home from that appointment. Or, if you have several clients in one day, just write down the total miles driven each day as you make your rounds. That would be sufficient documentation.
The simplest way to do the deduction is to take 48.5 cents per business mile. If you do this, you do not deduct operating expenses for your car, such as fuel, insurance, or repairs.
You can deduct all parking charges at the client and tolls paid when going to a client or returning home from a client.
You can also deduct a fraction of the finance charges on your car loan. The fraction is the ratio of your business miles to all miles driven for the year.
2007-09-27 05:09:30 · answer #2 · answered by ninasgramma 7 · 2⤊ 2⤋
If you worked in an office you would not be able to deduct the milage from your home to that office. The same holds true in your case. However you can deduct the distance between clients. The first client would be considered "your office" and this would not be deductible. But when you leave there and go to another client that distance would be. So you should plan your trips accordingly. Always start with your closest client and go from there to your most distant one.
2007-09-27 04:59:54 · answer #3 · answered by Don 5 · 1⤊ 1⤋
When you are self employed according to the IRS you can use the gas, oil, maintenace on your vehicle OR you can take the mileage. IRS gives you a set price per mile you can claim. I've done it for a number of years and it always comes out higher if I use the figure the irs gives and multiple it by my miles.
2007-09-27 05:29:04 · answer #4 · answered by geo 1 · 0⤊ 0⤋
You can't deduct mileage and ALSO deduct actual expenses - you have to choose one or the other. Deducting finance charges on your car AND mileage is double-dipping and not allowed.
2007-09-27 05:29:32 · answer #5 · answered by Judy 7 · 1⤊ 1⤋
Yes,
You need to keep a record of all 'business' mileage with start and end points, and also keep receipts for enough gas to cover that mileage.
2007-09-27 04:50:37 · answer #6 · answered by Lowlevel 4 · 1⤊ 2⤋