"commuting" mileage

[Todd Mapes]

Terry,

As a former CPA, I have access to an old "U.S. Master Tax Guide" which is
kind of the handbook for tax accountants.  Under paragraph 945 "Local
Transportation Expenses", it states -

   "Commuting expenses between a taxpayer's residence and a business
location within the area of the taxpayer's home generally are not
deductible.  However, a deduction is allowed for expenses incurred in excess
of ordinary commuting expenses for transporting job-related tools and
materials.  An individual who works at two or more different places in a day
may deduct the costs of getting from one place to the other.

    There is an exception to the general rule that commuting expenses are
not deductible.  If a taxpayer has at least one regular place of business
away from home, then daily transportation expenses for commuting between the
taxpayer's residence and a temporary work location in the same trade or
business can be deducted (Rev Rul. 94.47).  A temporary place of business
for this purpose is a location at which the taxpayer performs services on an
irregular or short-term basis.

    Travel from a Home Office - Individuals who use their homes as their
principal place of business are permitted to deduct transportation expenses
that would otherwise be classified as nondeductible commuting costs.  A
recent Tax Court decision permitted an individual to deduct daily
transportation costs incurred in traveling between his home and numerous
temporary work sites because the home was the individual's "regular place of
business."  However, the IRS has ruled that it will not follow the Tax
Court's decision in such a situation unless the residence is also the
taxpayer's principal place of business."

So, I think as piano technicians, we pass all the tests - 1.  We use our
cars to transport job-related tools and materials.  2.  We travel to
temporary work locations from our primary work location.  and 3.  We use our
homes as our principal place of business (where we make most of our contacts
with clients, perform administrative functions, store inventory, do shop
work, etc.).  I would recommend deducting everything from the moment you
leave the house until you get back home, unless of course you do extensive
personal errands in the interim.

Todd L. Mapes
Fort Smith, AR

----- Original Message -----
From: "pianolover 88" <pianolover88@hotmail.com>
To: <pianotech@ptg.org>
Sent: Sunday, December 16, 2001 6:09 PM
Subject: "commuting" mileage


Since I, like most of you, claim a percentage of my residence as an
office/workshop, (to claim as a business expense) I am allowed to deduct
mileage FROM my house, to every work related job, at 34.5 cents per mile. Of
course there WILL also be "personal" use mileage, but what about "commuting"
mileage? Since my home IS also my business address, then when will commuting
come in? I suppose if I was somewhere OTHER than home for a visit to a
friend or whatever, and I left FROM that place TO a job, then that would be
considered "commuting" miles, but for the most part, It seems to me that the
vast majority of TOTAL mileage for each year, will be "business" miles, and
"personal", with very little "commuting" miles. Am I wrong here? Love to get
everyone's thoughts on this matter.

Terry

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