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question about mileage deduction - special circumstances

 

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Subject Author Date
question about mileage deduction - special circumstances tompaulko 06-22-2008
Posted by Arthur Kamlet on June 23, 2008, 11:16 am
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>On Jun 22, 7:44 pm, kam...@panix.com (Arthur Kamlet) wrote:
>
>> So 1) what entity is your employer leasing arrangement, 2) do you
>> meet the convenience of employer rule, 3) do you meet the regularly
>> and exclusively rule, and 4) just how is the home office used and
>> needed in her work and in your work?
>
>1. The entity is an S-corp.
>2. I don't attempt to lease space in my home to my business. I
>recognize that our home office is not used 100% for business use.
>3. Nobody can possibly meet the regularly and exclusively rule. At
>least not the exclusively bit. However, it seems that the IRS does
>allow some stretching of the exclusive bit. We do not meet the
>regularly and exclusively rule because of a bit I read where if I use
>it for another business, then it does not count as regular and
>exclusive. My wife and I have two business which we run from the home
>office, and I have another which I operate in conjunction with another
>business partner.
>4. My wife currently does not have much need of the home office for
>the receptionist position, however, she did use the home office all
>day long for 6 weeks about 6 months ago when she was performing
>computer work for another local company. The salon is also not the
>only place she currently performs duties for. She also has been
>performing building maintenance for several different building owners.
>I use the home office in my position of treasurer of all three
>entities, doing such work as invoicing, preparing mailings, receiving
>payments, and so forth.
>
>I guess this has digressed a bit from the original question, sorry
>about that. I guess what I can't understand is, if my home office
>doesn't meet the requirement for a home office, then where is my
>office? Does it just travel around with me according to the IRS? Are
>all my trips to the rent houses, the post office, the bank all
>considered non-reimbursable?


If I work for XYZ corp and go to work every day, and might or might
not have an office, should I be able to deduct my mileage?

I read into your message a belief in entitlement to mileage
that the IRS has statd they know is out there and will be
looking at carefully.

What you have stated here would not convince me you had an
office in the home deduction.


But that's just my opinion and if anyone else has an opinion they
are free to let us know.
--


ArtKamlet at a o l dot c o m Columbus OH K2PZH

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Posted by dpb on June 23, 2008, 3:20 pm
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Arthur Kamlet wrote:
...
> What you have stated here would not convince me you had an
> office in the home deduction.
...

Not to mention it's hard to fathom how working as a receptionist in a
salon can qualify as "consulting"...

--

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Posted by kastnna on June 23, 2008, 6:19 pm
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> Arthur Kamlet wrote:
>
> ...> What you have stated here would not convince me you had an
> > office in the home deduction.
>
> ...
>
> Not to mention it's hard to fathom how working as a receptionist in a
> salon can qualify as "consulting"...

I am admittedly out of my element here guys, but does the IRS still
use the SS-8 form or pub. 1779 to determine if the wife is an employee
or independent contractor. If so, wouldn't that settle it? If not, is
there something similar?

I personally think this falls under the walks like a duck, quacks like
a duck theory. I've personally never met a receptionist/consultant.

========================================= MODERATOR'S COMMENT:
OP states both of them are employees of their S Corp, so employee
vs SE is not the issue. The issue is whether either of the leased
employees can claim an office in the home deduction.

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<< The foregoing was not intended or written to be used, >>
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Posted by tompaulko on June 24, 2008, 12:03 am
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>I've personally never met a receptionist/consultant.

Okay, well how about this? A receptionist working through a temp
agency. The temp agency handles all the withholdings, unemployment
taxes and so forth. Is mileage deductible for the excess (if any)
miles driven to the salon versus if they drove to the temp agency?
Maybe I am just using the wrong terminology.

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
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Posted by Arthur Kamlet on June 24, 2008, 12:41 am
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>>I've personally never met a receptionist/consultant.
>
>Okay, well how about this? A receptionist working through a temp
>agency. The temp agency handles all the withholdings, unemployment
>taxes and so forth. Is mileage deductible for the excess (if any)
>miles driven to the salon versus if they drove to the temp agency?
>Maybe I am just using the wrong terminology.


If this was a Union Hall situation, where Union members report to
their union hall every morning to receive their assignment, or
sometimes no asignment at all, you might have a point.


But since the owners of the S Corp and the employees are one (or
two) and the same, there is no necessary reason to report to the
"union hall" to give yourselves assignments.


It isn't clear to me if you came up with this office in home
notion yourself or if someone persuaded you to do it.
--


ArtKamlet at a o l dot c o m Columbus OH K2PZH

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
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<< that may be imposed upon the taxpayer. >>
<< >>
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