Posted by F2F/FL on 11/8/12 7:53am
Msg #442591

Need clarification from our more experienced notary publics

as to what we are able to claim on our taxes for mileage. I would also like to know if this question is state specific.
When doing our small business taxes, are we allowed to claim full round trip mileage from our (home) office or are we only allowed one way amounts? And if we go from the first appointment to the next in the same day, some may have 2-3 or more in one day, is that your total miles for that day? I have always understood it to be only one way, but do to the type of work that we do, example being small business repair companies, or pool service etc., small lawn service.
I hope I asked this question so someone with this knowledge can help me.

Reply by bagger on 11/8/12 8:23am
Msg #442593

It's round trip, not sure about your state, but does not pertain to state taxes in Illinois.
It's a business expense on your Federal return at .555 per mile.

Reply by 101livescan on 11/8/12 8:45am
Msg #442595

I would be surprised if this differs state to state. The IRS sorta sets the standard...I just give the annual business mileage numbers to my CPA, he does the rest.

Reply by bagger on 11/8/12 9:28am
Msg #442599

Ya never know, there MAY be some state that offers an extra tenth of a penny just to attract business.

Reply by 24 7 Las Vegas Notary on 11/8/12 3:09pm
Msg #442654

NOT giving tax advice, of course...however...within the IRS code (i.e. the link provided by someone else takes you there)...you will find this 'fine' example given by the IRS to see if this fits your situation (Note Example 2)

Examples of deductible transportation. The following examples show when you can deduct transportation expenses based on the location of your work and your home.
Example 1.

You regularly work in an office in the city where you live. Your employer sends you to a 1-week training session at a different office in the same city. You travel directly from your home to the training location and return each day. You can deduct the cost of your daily round-trip transportation between your home and the training location.

Example 2.

Your principal place of business is in your home. You can deduct the cost of round-trip transportation between your qualifying home office and your client's or customer's place of business.

There are 'many' examples given...this one seemed the most fitting to a standard work-from-home single notary situation. Hope it helps someone.

Reply by Clem/CA on 11/8/12 9:02am
Msg #442596

Read this for IRS rules

http://www.irs.gov/publications/p463/ch04.html

Reply by BoomerSooner on 11/8/12 9:12am
Msg #442597

Re: Tax and the NSA

This will be my first year doing the "full monte" on taxes, I am looking at mileage, home office space, cost of suplies, memberships, looking at all expenses.

What are your experiences with end of year tax.

What should I expect to gain from doing this extended tax claim?

Reply by A S Johnson on 11/8/12 9:55am
Msg #442600

Re: Tax and the NSA

An IRS audit.
Home office can many times be a be a "red flag".

Reply by Clem/CA on 11/8/12 10:17am
Msg #442604

Re: Tax and the NSA

As long as you are following the IRS rules who cares? I had an audit last year and had no changes in my taxes. Keep records and there will be no problems.

Reply by ikando on 11/8/12 11:01am
Msg #442611

Re: Tax and the NSA

Good reply Clem. Other considerations for tax purposes, as self-employed persons, if you're buying your own health insurance/expenses (and your % of income qualifies), using credit cards for business expenses (interest), home office (= portion of dwelling EXCLUSIVELY USED for business, including costs for insurance and interest), education fees (books, seminars, classes). My husband's an Enrolled Agent, and we just filed our 2011 return (kinda like the shoemaker's kids have no shoes cause he's too busy), so these are items that are fresh in my mind.

Reply by Stephanie Santiago on 11/8/12 11:51am
Msg #442621

Re: Tax and the NSA

Supplies (Hardware, Software, copy paper, toner cartridges, every possible supply used).
Membership Fees
Mileage
Industry periodicals
I'm sure everyone can add to this ever so small list

Reply by F2F/FL on 11/8/12 10:49am
Msg #442609

Thank you everyone for your contribution and information. Also thank you Clem for the link. I think that link should also be shared with everyone as I read most of it and learned quit a bit about tax's and deductions that we in this type of business should be aware of and allowed to use.
The answer to my question was that I WILL be able to use the round trip mileage and there was no reference to the particular state you are doing business in, although there are certain conditions to be aware of in order to clain full round trip miles.
I encourage everyone take advantage of the wealth of information at this site.
Again thank you so much.

Reply by MW/VA on 11/8/12 11:19am
Msg #442614

Glad someone gave you the link. It's a good idea to become

very familiar with the tax laws for self-employed/small business owners. Yes, you can deduct all mileage, including trips for supplies. The IRS is picky about mileage, and employees who use their own vehicles have restrictions on what can be claimed.
There's also the deduction for "notary fees" from Self-Employment Tax. Some take it and some don't. There's been a lot of discussion. Always keep really good records.
Good luck. :-)

Reply by sueharke on 11/8/12 3:13pm
Msg #442656

I am answering this question as a CPA and a notary.

If you have a home office only:
The mileage for any business purpose (drive to and home fromthe client, FedEx, UPS, store for supplies) is deductible business mileage. Make sure you have a mileage log to support your mileage deduction. The mileage log may be a calender, your journal comment, specially made mileage log book, etc.

If you have a business office:

The mileage from home to the business office is not deductible as business mileage, but is considered commuting or personal mileage. Driving from the office to the client or other business purpose is deductible as business mileage as is driving back to your business office to conduct more business. Driving from the business office to home is personal commuting expense and is not deductible. Same mileage log rules apply for these business miles.

Reply by JanetK_CA on 11/8/12 3:20pm
Msg #442658

You're confusing the rules for employees with those for the self-employed, where your primary place of business is in your home. That's the key, because travel from home to your primary place of business is considered commuting, and not deductible. But if your primary place of business is in your home, all business mileage start when you leave and finishes when you return, as long as it was purely business mileage.

That's one reason why documentation is so important. Can't remember if anyone already mentioned this, but I believe you're also supposed to document the business purpose and who you met with.

Reply by Edward Cooke on 11/8/12 4:33pm
Msg #442663

Self-employed does not necessarily mean "works from home."

Reply by JanetK_CA on 11/8/12 5:00pm
Msg #442669

True. I guess I could have worded that better, as I meant that as a qualifier, not an assumption. Thanks for clarifying.

Reply by Deborah Breedlove on 11/8/12 5:09pm
Msg #442672

True, Edward. I am self-employed but work from an outside office since I own an accounting and tax business. My daily commute to my office is not deductible.

Also, many employees work from home these days.

The key is whether your principal place of business is your home office. If so, you would have no commuting miles, and all your business miles would be deductible.

This is true whether you are self-employed or an employee. However, business deductions for an employee are not as advantageous since they are in a category of itemized deductions that are limited to the amount that exceeds 2% of AGI. For us self-employed folks, we get the deduction right off our business income on Sch C, or whatever business form is appropriate for the entity type.

Reply by Jennifer Jackson on 11/9/12 8:34am
Msg #442733

The mileage is different from the first part of the year (6 months) and the last 6 months. It is round trip from your home or office. You need to calculate the mileage for each. I am also an Accountant, but I have my assistant calculate my mileage weekly as it can become overwhelming depending on how many appointments I have.

Reply by Deborah Breedlove on 11/9/12 12:21pm
Msg #442775

They didn't change the rate for the second half of 2012. They did that in 2011 and 2008, but not every year. It's still 55.5 cents a mile for business miles.