Business Mileage

[TaxmannEA]

I'm currently working on a client's behalf with Appeals (Tax Court) regarding a 2017 tax return.  Client is a truck driver that works through a union hiring hall for a company that had projects in WI and MI. He would drive his personal vehicle to the work sites and be on site for a week or so and then return home until he was called out to work again. The original preparer took mileage to and from the work sites as well as lodging and M&IE. The revenue officer is OK with the lodging and meal allowance, but she has it in her head that the mileage is commuting. I believe that the mileage is allowable as it was figured from his regular business location (the hiring hall) to the temporary remote locations. 

I'm just needing some assurance that this is correct. The revenue officer is working from home, so she does not have her manuals at home with her. I'll be looking for a cite as soon as I finish the client who just came in with 3 year's of unfiled returns , etc. 

[Pacun]

If he doesn't have an office at home, it will be hard to take that deduction.

[Max W]

11 hours ago, Pacun said:

If he doesn't have an office at home, it will be hard to take that deduction.

Especially in Appeals, as it was already rejected once.

[Lee B]

Your hurdle is to establish that his tax home is where he lives and that he is not a "transient" worker.

If you can establish that, then home office is not required. There are examples and from what I remember court cases to back this up.

[TaxmannEA]

My understanding is that if he works from a union hiring hall, his mileage to a temporary remote work site would be deductible if he is on location for more than 24 hrs. He would go to the site and stay all week then return for weekends or if the work paused due to weather, etc. I also remember court cases, but darned if I can find them now. 

[Lee B]

If he goes home home and returns to the same site, I believe that mileage is considered to to be commuting.

[jklcpa]

I agree with cbslee and think "tax home" is what you need to consider. A really old topic on our site but worthy of reading the points made:

 

This one too that is on the subject of tax home:
 

 

And maybe a tidbit of info in this one:
 

 

[DANRVAN]

On 11/6/2020 at 11:10 AM, TaxmannEA said:

. The original preparer took mileage to and from the work sites as well as lodging and M&IE. The revenue officer is OK with the lodging and meal allowance, but she has it in her head that the mileage is commuting.

What she is saying does not make any sense.  Since she is allowing meals and lodging then she must be in agreement  that the work sites were temporary and away from the taxpayer's regular work area; therefore travel expenses are allowed per section 162(a)(2).

So why is she limiting allowable travel expenses to meals and lodging and disallowing the basic expense of transportation?

 

[DANRVAN]

23 hours ago, cbslee said:

If he goes home home and returns to the same site, I believe that mileage is considered to to be commuting.

If he is temporary working away from his regular work area (metro area) then mileage is deductible regardless of whether he comes home at nights.

However, if he comes home at night meals are not deductible.

[DANRVAN]

1 minute ago, DANRVAN said:

If he is temporary working away from his regular work area (metro area) then mileage is deductible regardless of whether he comes home at nights.

Case law back that up.

 

[DANRVAN]

On 11/6/2020 at 8:10 AM, TaxmannEA said:

I'll be looking for a cite

It sounds like the appeals officer agrees that your client has allowable travel but is confuses on what is allowed.

You might show her that his mileage is allowable per table 1-1 of Pub 463.  I would stay away form court cases at this point.

On 11/6/2020 at 8:10 AM, TaxmannEA said:

. I believe that the mileage is allowable as it was figured from his regular business location (the hiring hall) to the temporary remote locations

That is not totally correct.  Neither the IRS or case law recognizes the hiring hall as his regular business location.

His regular business location is the general area where he normally works, whether it be 1 mile 5, miles, 10 miles or 50 miles from his residence.  It can also be the metro area he lives in.

[Lee B]

It's very interesting how many different opinions exist among tax professionals about this topic and the thread about"mileage logs".

Business mileage and mileage logs are something that we all deal with every tax season with multiple clients.

Yet there are so many nuances that many of us adopt a simplified interpretation so that we can get thru tax season.

[DANRVAN]

On 11/10/2020 at 8:16 AM, DANRVAN said:

Case law back that up.

 

T.C. Summary Opinion 2008-11  "Mr. Lease’s costs for daily transportation outside of his metropolitan area where he normally worked are deductible within the meaning of Rev. Rul. 99-7, 1999-1 C.B. 361."

This was a case where the taxpayer drove home every night.

This position is also supported in Pub 463:

"If you have one or more regular work locations away from your home and you commute to a temporary work location in the same trade or business, you can deduct the expenses of the daily round-trip transportation between your home and the temporary location, regardless of distance."

and

"If you have no regular place of work but ordinarily work in the metropolitan area where you live, you can deduct daily transportation costs between home and a temporary work site outside that metropolitan area."

[Margaret CPA in OH]

 

Posted Thursday at 02:39 PM

It's very interesting how many different opinions exist among tax professionals about this topic and the thread about"mileage logs".

Where is that thread about 'mileage logs?' I can't find it now but recall there were a few apps mentioned.  A client could really use a good one.  I tried the search box but it must have a different title.  If anyone can recall those apps listed, I would be grateful to have them.

[Lion EA]

I use MileIQ.

[jklcpa]

30 minutes ago, Margaret CPA in OH said:

Where is that thread about 'mileage logs?'

I banned the OP in that topic as well as another person that joined that was a salesperson.

I don't have time at the moment, but when I get back I'll assemble screenshots from that hidden topic so the pertinent information will be made available for readers here.  Sorry for the inconvenience.

[Margaret CPA in OH]

Thanks, Judy.  I do now recall the OP as being, well, not a tax person and your comment about the phishing.  No big hurry about the info, it just came up with a client (filing today, yes) who really needs a better way to track mileage and I recalled that several were discussed.

[jklcpa]

Other than suggestions of using apps like Google Maps, Mapquest, Trip Advisory, and summarizing in Excel, there were only 2 actual mileage summarizing apps mentioned: MileIQ and another called Trip Log.  There was also a post by Danrvan about contemporaneous records that may be helpful to someone. 

Here are the screenshot grabs in one photo:

[Margaret CPA in OH]

Thanks so much!  I am hoping this helps the client.  If it's easy to do, she might comply better.  I am leery of reconstructing via Mapquest and the like.  We shall see1  Thanks again.