sheesh3[at]yahoo.com wrote:

- quote -

If one were to take the rational action of allocating
any deductible travel costs of each segment to the
purpose of the destination, it doesn't matter. The PO
was your FIRST business stop.

If it weren't I'd have to say the TP could pick.

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"Arthur L. Rubin" <ronnirubin[at]sprintmail.com> wrote:

- quote -

To clarify:

The PO Box is paid for by a for-profit and is shared with a
non-profit.

My client works for the for-profit and is a volunteer with
the non-profit. His job duties with the for-profit require
him to check the mail. His volunteer duties (he is an
unpaid officer) with the non-profit require him to check the
mail.

Based on what I am reading above, I could also declare the
PO to be a non-profit stop.

So which is it? I doubt it can be both or the IRS would be
upset at double counting the miles. Can the TP pick?

thanks,

bex

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- quote -

I don't think you can justify it on that basis. The
justification I would use is that it IS a business
location, because a business function (picking up
business mail) is done there. Whether the PO Box
cost is paid for by the business or by the individual,
or used for business and non-business mail, is only
relevent for the deductiblility of the PO Box as
a business expense; or, if the business is a
separate entity (as opposed to a Schedule C
business), whether the personal use constitutes
income TO the individual.

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- quote -

I agree with your remarks on this one now that I have
thought through it some more. Because the Biz is paying for
a single PO Box and letting the NPO use it, it is still a
"Biz" location.

TP of course asked what would happen if the NPO rented there
own box there, separate from biz.

My gut says at that point with two distinct stops in the
same physical location (analogous to driving to a shopping
center for two errands) TP could pick which way the miles
count, but could not double count the miles.

I would make the same case for TP goes to the PO and mails
letters for biz and personal. The personal mail shouldn't
trump the biz mail right?

Do you agree?

Thanks,

bex

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sheesh3[at]yahoo.com wrote:

- quote -

I would make that one no credit. However, the PO would seem
to be a business location. (It's only HOME offices which
have the exclusive use rule.)

- quote -

Business.

- quote -

Charity.

Return home (35 miles)

Charity (probable).

- quote -

I make it 60 charity miles and 10 business miles.

Alternatively,
one can calulate the number of charity miles that would be
required for all the charity stops, and the number of
business miles that would be required for all the business
stops, and use that to prorate the full 100 miles between
the two categories -- but I don't know if that would hold
up.

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How about this scenario a TP just presented me with.

TP does volunteer work with two organizations. TP is an
officer of one, and a regular volunteer with the other.
TP also is the officer of a Corporation that has no
fixed place of business.

TP's duties for both the Corp. and the Nonprofit he is an
officer of require him to check the mail, do the bills,
payroll, etc. TP is not claiming a home office deduction
for any organizations because he admits to doing his own
bill-paying, etc at the same desk.

As a general statement, I gather the following would be
true for this TP:

1 - Any miles driven for either non-profit would be
deductible on Schedule A. That would include meetings,
getting the mail, going to work the conventions, etc.

2 - Any miles driven for the business are not deductible
until he makes the second and subsequent business stops,
because he is not taking a home-office deduction.

Is this correct?

So on a trip like this:

Leave home, drive to PO and check for profit and non-profit
mail (30 miles). Leave PO and drive to another location
and deliver a for=profit paycheck to an employee (10 miles).
Leave paycheck location and drive to a volunteer meeting
(different org) (25 miles). Return home (35 miles)

I see 90 deductible volunteer miles and no deductible Sched A
miles.

Does this TP need reduce the mileage because TP also checked
the mail for the for-profit? Does TP need to reduce the
mileage because TP made the stop in the middle?

bex

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Maren Purves wrote:
- quote -

No. It's ANY business-to-business travel.

- quote -

Actually, having a home office doesn't have property tax
implications, at least in California. It MAY have city
business license tax implications, but you might have
the same implications even if you have a disqualified
home office.

But -- without doing additional research as to whether
have a home office is NECESSARY in order to claim
business-to-business mileage, that would be my position:
travel from home to the farm is not deductible unless
you have a home office or the farm is far enough away
that you have to sleep during the trip. (The "away
from home" rule.)

- quote -

If you kept adequate records, you can probably amend your
returns back to 2000, if it seems appropriate. Some
elections have to be taken on the original return (or, at
least, within 6 months of the original due date), but others
can be taken on any amended return for an open year.

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Arthur L. Rubin wrote:
- quote -

My understanding was that this was only if you're in the
same business (as in "occupation') - I'm a software engineer
who farms on the side.

Also, you're implying that if I don't claim a home office, a
trip from home to the farm is not deductible (not claiming a
home office as that would have property tax implications),
right?

- quote -

Kinda. At least something more to look into and read up
about. As I didn't mean to do this for last year anyway, I
think I got some time, but if anybody has more information
about this, I'd appreciate it.

Thanks,

Maren

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Maren Purves wrote:

- quote -

Generally, driving between two business sites (including a
home office as a business site) is deductible. An IRS agent
has suggested it should be allocated to the business you are
driving TO, but I can't find any direct support in the code
or regulations.

I'm not sure if I answered your question.

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Arthur L. Rubin wrote:
- quote -

does this mean that it is tax deductible when I drive from
my job to my farm (opposite direction to driving home)? and
does this mean driving to my farm from home is tax
deductible?

- I always considered that commuting and as such not tax
deductible ... -

Thanks,

Maren

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gd wrote:

- quote -

Only if they treat you as a subcontractor, with your
renumeration reported on a 1099-misc instead of a W-2.

- quote -

Dunno. This is something you take up with them.

- quote -

No. there is absolutely no valid business reason, assuming
you are a subcontractor versus W-2 employee, for such a
vehicle.

Cheer$,
Harlan Lunsford, EA n LA

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gd wrote:

- quote -

If you treat it as a business for all other purposes, it's
likely you will be able (and required) to treat it as a
business for tax purposes. Others can give the 9 rules....

- quote -

I got a 1099 as a substitute lecturer at a community
college. (Whether it should have been a W-2 is a separate
question.) This seems close enough that I'd go with
whichever option the University takes -- if they took a W-4
and give you a W-2, you're an employee. (If THEY set the
course time, it's more likely to lean that way. If the
University sets the course syllabus and gives the student
credit, that also leans toward "employee".) If they took a
W-9 and give you a 1099-MISC, then THEY consider you an
independent contractor. They could be correct.

- quote -

I can't imagine how you USE a big vehicle in your business.
Remember that travel from your home to the work site is
commuting (unless you have a home office), and is
non-deductible. Travel between your IT job and your
teaching job IS deductible.

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gd_souza[at]hotmail.com (gd) wrote

- quote -

It's possible that the university treats you as an employee
(in which case you are....well...an employee.) It's also
possible that you are treated as an independent contractor,
and they issue you a Form 1099 with the amount they paid you
in Box 7 as Non-Employee Compensation, in which case you are
self-employed (in-business).

- quote -

If you have other income from other individuals or
businesses that you taught classes to, then you are
self-employed.

- quote -

You would have to ask the university how you are being
treated. Did you get a W-2 or 1099 from them?

- quote -

I have to begin wondering when the IRS will challange the
vehicle deductions based on "ordinary and necessary" need
for an SUV to get to and from the college.

In any event, if the usage of the vehicle (any vehicle) is
less than 50% for business, then the answer is "no", as
Section 179 isn't applicable to assets used less than 50%
for business.

Paul A. Thomas, CPA
Athens, Georgia

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I have a full-time job as IT person with a company - and on the side,
I teach IT security classes to whosoever who will pay.

For the past two years, I have taught an IT security class
in Spring semesters at a state university. The university
hires me as a part-time lecturer and I get paid.

My questions are as follows:

1. Can I consider this on-the-side activity as a business?
If not, what do I need to do to be considered a business?

2. Does being a "lecturer" per university lecturer make me a
University employee and not a business?

3. Can I leverage
buy-a-big-vehicle-and-qualify-for-section-179 for my
teaching?

- GD

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