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Posted by Paultry on February 11, 2008, 2:13 pm
Please log in for more thread options Paul Thomas, CPA wrote:
>
>
>>>> I'm retired and work part time (infrequently) for a car
>>>> dealership as a driver. They consider me an independent
>>>> contractor. The drive to the dealership is about 16 miles
>>>> and costs me about $4.25 in gas. Can I deduct that from my
>>>> earnings from them?
>>> The dealership would be considered your regular place of
>>> business - and therefore non-deductible commuting.
>>>
>>> FWIW: One of my retired clients does the same thing, and
>>> he's treated as an employee. I suspect that's for liability
>>> purposes. Wonder how your employer would handle things if
>>> you smacked up a car.
>> How does any employer handle it? Just a rough estimate but I guess there
>> has been billions car accidents that involved employees going to and from
>> work in the past.
>
>
>
> No doubt. But I'm referring to when the contract driver is driving the
> dealer's car (from one dealership to another, to/from the auction lot, etc
> is most common) and there's an accident. There was a car fire here last
> summer, while the car was on the carrier, in the dealer lot. The carrier's
> insurance (not the dealer) had to cover the damages.
>
If the IRS employer/employee tests were considered, the 18
wheeler car hauler owner/operator, who hauls for various
dealers and distributors, carries insurance specific to his
business, uses and maintains his own equipment, buys his own
fuel, and can zig zag across the country on his own
schedule, would qualify as an independent contractor. The
retiree, who drives vehicles owned or controlled by the
dealer, burns fuel supplied by the dealer, and drives a
straight line from dealership to dealership, when and where
directed by the dealer, would likely be determined to be an
employee of the dealer. I doubt that the retiree's personal
auto insurances carrier would be eager to pay a claim if he
wrecked a dealer's car while driving for hire. Nor would
the dealer's insurance carrier and floor plan underwriter be
thrilled that the dealer is putting his cars in the hands of
an uninsured or under insured driver. A personal injury
attorney would surely look to the deep pockets of the dealer
if the driver was at fault in a wreck. Seems the dealer is
taking a substantial risk to avoid payroll taxes and
expenses.
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