Posted by cassiewi on 9/22/06 10:21am
Msg #147744

Question re: mileage

I did a search, but I couldn't find exactly what I was looking for. So here goes, I have 4 appts today. 12, 2:30, 5:30 and 7

Do I start calculating mileage from the time I leave the first appt at 12 until I arrive at the last appt at 7?

It is my understanding that the original trip from home, and the return trip home (end of the "day" do not count. But does everything business related in between count?

I didn't think I would need to claim mileage, but in doing a trial run of taxes for next year, I can clearly see I need the deduction. Especially since WI can only charge .50 per notoraization. I already went through all my old invoices looking for days when I had more than one assignment, but I just wanted to run it by you guys. Any help is appreciated.

Reply by BarbaraL_CA on 9/22/06 10:34am
Msg #147756

I calculate mileage from the time I leave my home-office to the time I return to my home-office. I think the key word here is "office". All the mileage I accumulate is business miles.

Reply by cassiewi on 9/22/06 10:37am
Msg #147760

Unfortunately I cannot claim home office, I use this room 98% of the time. But do you think my assumption is correct, from the time I leave the first appt to the time I arrive at the last appt.

Reply by ck_KY on 9/22/06 10:40am
Msg #147762

Re: 98% of the time??

Is it like another room in your home such as a bedroom or dining room? or is it a seperate room of your house like a home office? Just curious, as I have a SMALL office (6x9) and I go long form so I get to claim a percentage of my electric, phone, house insurance, property taxes etc...

Reply by cassiewi on 9/22/06 10:45am
Msg #147765

Re: 98% of the time??

It should be used as a formal dining room, but we use it as a computer room. It's not that large. I meant that my kids also use this room to play on the computer and my understanding is that you have to use the room 100% of the time for business. The long form will let me take some type of % off?

Reply by onthegoinfl on 9/22/06 10:46am
Msg #147766

Re: 98% of the time??

The IRS is very strict about writing off office space in your home. To be able to do this legally, you must have a separate room that is only used as an office. In other words, it cannot be a room that is used as an office and a bedroom.

Reply by cassiewi on 9/22/06 10:48am
Msg #147767

Re: 98% of the time??

OK, it is a computer room, set up like an office. Can I use that, even though my kids will play on the computer sometimes?

Reply by onthegoinfl on 9/22/06 10:44am
Msg #147763

By all means, definitely calculate every business related mile! It is perfectly legal to do so and you will need that write-off. You can also calculate all mileage used to go from your home to the store and back to your home if you are purchasing supplies for your work or to and from the post office or Fedex if you are dropping off packages, all of this is work related and tax deductible. Always keep a mileage log book for several years in the event you are ever audited. Here is how I calculate my mileage.

Siging One: Begin calculating from the moment you leave your driveway till you arrive at the signing.

Closing Two: Begin calculating your mileage once you leave your first signing until you arrive at your second signing.

Closing Three: Begin calculating your mileage once you leave your second signing till the time you arrive back home.

Reply by MelissaCT on 9/22/06 11:06am
Msg #147779

Re: Question re: mileage - commute

I think you're confusing commuting mileage with business mileage. I work FT and cannot expense the mileage from my home to my primary business location, however, I can and do expense mileage to/from signing locations regardless of if I leave from home or work as that is not commuting miles.

Thsi is not intended as legal advice or to replace the advice of a tax professional. If in doubt, contact your tax professional or the IRS for proper guidance.

Reply by cassiewi on 9/22/06 11:10am
Msg #147781

Re: Question re: mileage - commute

I understand this is not legal advice. Thanks for your input, now I have to go back and do every job over again for the year. That's good news, believe it or not. I'll double check with the tax man, I just wanted to see what you all thought. Thanks again.

Reply by Debbietax_CA on 9/22/06 11:39am
Msg #147793

There are a lot of variables in determining if you can take mileage from the time you leave your home, but for the most part if your primary work and business is located out of the home, you can take mileage from your home. Make sure proper logs are kept! The IRS will disallow if you cannot show good records in an audit. Many of these questions can be answered by going to the IRS website at www.irs.gov and downloading Publication 334, Small Business Expenses. This discusses home offices, mileage, and many other business related decuctions. Mileage is discussed specifically on page 33 of that pub.

Reply by cassiewi on 9/22/06 11:43am
Msg #147795

Thanks for the input.

Reply by James Yeargan on 9/22/06 3:08pm
Msg #147838

Don't forget to calculate any mileage you accumulate when you go to ship the docs, and then when you return home. If you have to go to your prinicipal place of business before going to your first signing the trip to your principal place of business is not deductible, but the mileage from there to the first signing is. If you leave your house and go directly to your first signing that mileage is deductible. As long as all your driving is for business keep the meter running until you get home.

Jim

This is not legal advice and should not be construed to be. Further said advicein no way creates an attorney client relationship nor privilege.

Reply by David Kral on 9/22/06 3:16pm
Msg #147843

1) Count from when you leave to when you are back.
2) You probably have more milage than you think. Going to the Fedex drop
3) Going the office supply store.(I combine all personal trips with notary trip(swinging by
the grocery store, office supply store after church on Sunday)

Home office deduction. Likely not worth it. You have to track records for years. Then recapture this when you sell you house. Ugh! It is sort of like driving 10 miles down the road to save .01 a gallon on gas. In the end, it is not really worth the effort.

Self employment taxes will take a chunck.
Medical benefits will aborb a chuck
Putting money into a retirement account will take a chunk
You should be able to shelter most of it.

Even without an home office, you can write off your cable, telephone line, newspaper and other items. I would not have high speed cable if I did not do signings. I need a phone line to receive faxes. I need the newspaper to stay on top of housing and mortgage trends, and to spot the names of new title companies in my area.

I log each closing into quicken and in the memo field enter the milage. Make a dummy enter for runs to the office store with a charge of $0.00. Run the report at the end of the year and you can acount for all your milage in a few minutes!

Reply by Gerry_VT on 9/22/06 4:47pm
Msg #147873

Mileage for free notarization

If I do a free notarization (actual example: permission forms for minors to ride in a Multiple Sclerosis bike tour) I deduct at the volunteer rate on the line for charitible contributions. The charitible organization I'm donating to is Rutland County because I'm doing volunteer work as a county officer.

Reply by cassiewi on 9/22/06 5:11pm
Msg #147877

Thank you David and James, appreciate it.

Yes, I think I do now. I was under the impression I had to go from job to job, not home to job. A lot of catching up to do.

The way I read it, is if you can't claim a home office, you can't claim utilities and cable and phone. At least that's the way I interpreted it on the irs website. I'll check with my tax guy on Monday. Thanks a bunch for the info.

Do you think mapquest will suffice? There's no way I can get the actual mileage from my car now. And I think I'll have to eat the office trips, but no biggie. I am relieved that I can claim the mileage.

Reply by Gary_CA on 9/22/06 7:14pm
Msg #147899

Home Office... I heartily disagree...

I take my home office... and the deduction is itty bitty... so why bother?

Because if you don't have a home office your mileage to the first place you work is a commute and thus non-deductible. But if you have established a home office then non of your driving is commuting it's all business driving and all deductible.

I am not a lawyer or an accountant or a tax specialist and I've never spent a night at Holiday Inn Express ...