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Old 02-12-2004, 07:31 AM
Christopher Green
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Default Re: Commute expense question

netvemu[at]yahoo.com (NetVemu) wrote:

- quote -

> I got a long term contract for more than 9 months in
> S.California.
> My commute is 60 miles each way.
> My question is : Can I deduct 36c/mile commute to work as
> sole proprieter.
> Another scenario:
> If I choose, an agency is agreeing to put me on their W2 for
> a fee of 250$/month. They will deduct employer payroll taxes
> and usual employee side stuff from invoice proceeds and pay
> the rest. But, they provide invoicing suppport and umbrella
> policy for work related liability etc. If I go that route
> can I deduct the commute.
> Even without commute deductibility, does W2 option sound
> right ?


You'd need a qualified home office to make the commute
deductible. It's slightly easier to qualify a home office as
a sole prop., because there isn't a "convenience of your
employer" requirement.

But unless you do substantial work for clients at home, keep
your records there, etc., I'd say your primary place of
business is pretty clearly the client site: no home office,
no deductible commute.

There is also a real question of whether you are an
independent contractor or an employee in this situation. It
can't be papered over by agreeing to pay you in one form or
another: it's whether your working conditions are more like
those of an employee or those of an independent contractor.

--
Chris Green

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  #-1  
Old 02-11-2004, 11:44 AM
NetVemu
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Posts: n/a
Default Commute expense question

I got a long term contract for more than 9 months in
S.California.

My commute is 60 miles each way.

My question is : Can I deduct 36c/mile commute to work as
sole proprieter.

Another scenario:
If I choose, an agency is agreeing to put me on their W2 for
a fee of 250$/month. They will deduct employer payroll taxes
and usual employee side stuff from invoice proceeds and pay
the rest. But, they provide invoicing suppport and umbrella
policy for work related liability etc. If I go that route
can I deduct the commute.

Even without commute deductibility, does W2 option sound
right ?

Thanks,
NVemu

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->
 

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