Tax Question: Mileage deductions

[AgentJean]

If I recall correctly in 2006 if you had a home based business you were able to deduct the one way mileage to your "day" job. Does anyone know if this still applies in 2007? I can't seem to find anything on the IRS website

 

[SoulAssassin]

I thought, and I may be wrong here, you were only allowed to deduct mileage in addition to what you would normally travel. Say you travel 10 miles to work everyday, but they send you to another site for the day which is 25 miles in the opposite direction. You can deduct 15 miles that day and 0 on a normal day.

 

[Winchester]

IIRC

Home to day job = Not deductible
Day job to home = Not deductible
Driving to clients office from home for home based business = Deductible

I think mileage only counts when it starts from your home.

 

[CPA]

SoulAssassin is pretty close. Salesmen generally can deduct all mileage, as well as some other professions when the can prove that their office is their home. Also, the rate is $.485 for 2007.

 

[Demon-Xanth]

Out of curiousity (because I've made 10 250+ mile trips while on the clock), how does the milage deduction work? My company reimburses 40.5 cents/mile while the IRS's "rate" is 48.5.

 

[spidey07]

Originally posted by: Demon-Xanth
Out of curiousity (because I've made 10 250+ mile trips while on the clock), how does the milage deduction work? My company reimburses 40.5 cents/mile while the IRS's "rate" is 48.5.

I believe you can deduct the difference. So 8 cents per mile and keep rigorous documentation (receipts, logs, etc)

Also, smack your company around a little bit.

 

[Demon-Xanth]

Originally posted by: spidey07
I believe you can deduct the difference. So 8 cents per mile and keep rigorous documentation (receipts, logs, etc)

Also, smack your company around a little bit.

Aww crap. Too late for that.

<-- could be getting $70 more back

...and trust me, I want to smack my company around for much more valid reasons than 8 cents/mile.

 

[LS20]

My company reimburse for travels generally 25+ mi from office @ irs rate of 48.5
does this mean we can get double deductions , 1 from co and 1 from irs?

 

[jandrews]

no, if a company pays you the deduction does not apply i thought. Only if your company does not reimburse you.

 

[spidey07]

Originally posted by: LS20
My company reimburse for travels generally 25+ mi from office @ irs rate of 48.5
does this mean we can get double deductions , 1 from co and 1 from irs?

No.

And you can't deduct driving to/from your primary work location.

 

[EagleKeeper]

One must also file the Schedule A.

The mileage ends up on the Form 2106 along with other expenses.

There is a loss of 2% of the AGI before the 2106 has any effect.

 

[AgentJean]

Are you people even aware that in 2006 if you had a home based business and another job, you were able to deduct the mileage to the location of that other job(1 way only)? Most of you appear ignorante of this.

I need to know if the IRS is allowing the same for this year.

 

[Winchester]

Originally posted by: AgentJean
Are you people even aware that in 2006 if you had a home based business and another job, you were able to deduct the mileage to the location of that other job(1 way only)? Most of you appear ignorante of this.

I need to know if the IRS is allowing the same for this year.

You can not deduct mileage to or from your 8-5 normal job. Only miles used that directly pertain to your home business. ex. If you run an errand during your lunch break to get supplies or meet a client for your home based company (schedule c), you can write that mileage off. You can not write off the mileage to and from your normal place of work, even if you have a home based business.

 

[AgaBoogaBoo]

Originally posted by: LS20
My company reimburse for travels generally 25+ mi from office @ irs rate of 48.5
does this mean we can get double deductions , 1 from co and 1 from irs?

No, because your company is. You write things off on your tax when it cost you something, and because your company is reimbursing you, you won't be able to say it cost you anything because in the end, they gave you what it "cost" you.

 

[spidey07]

Originally posted by: AgentJean
Are you people even aware that in 2006 if you had a home based business and another job, you were able to deduct the mileage to the location of that other job(1 way only)? Most of you appear ignorante of this.

I need to know if the IRS is allowing the same for this year.

Now that's what I call creative accounting!

 

[EagleKeeper]

Originally posted by: AgentJean
Are you people even aware that in 2006 if you had a home based business and another job, you were able to deduct the mileage to the location of that other job(1 way only)? Most of you appear ignorante of this.

I need to know if the IRS is allowing the same for this year.

Read the IRS guidelines and not the gossip rags.

Mileage is deductible to/from you primary employment is not deductible.
Mileage between your primary employment and a second job is deductible.

Spliiting hairs and stating that the mileage to get to the home business is deductible will earn you penalty points and a very pissed off auditor if they see such a defense.

 

[FoBoT]

Originally posted by: AgentJean
I can't seem to find anything on the IRS website

that is because you can't do that