...

5 Day Countdown to Tax Deadline-Know These 4 Magic Mileage Rules

[vc_row][vc_column][vc_column_text]

Question and Answer

Question 1.  To help manage your business, you have an office in your home that you deduct on your taxes.  To deduct the trip from your home to your office outside the home, you must first use your office at home.  For example, you need to go into your home office and make a phone call or boot up your computer to check emails so that you can deduct your trip from your home office to your downtown office.  True or false?

Answer 1.  FALSE.  . You don’t need to do anything in your home office before going to your outside-the-home office, assuming both offices are for the same trade or business.  The fact that you have an office inside the home means the trip from your home to your office the home is deductible.

Question 2.  You have no office in the home, but you do have an office outside the home.  You stop at the grocery store on the way to your office.  You may deduct the mileage from the grocery store to the office as business mileage.  True or false?

Answer 2.  FALSE.  Your trip from your home to your office is a personal commute.

Question 3.  you have an office outside the home.  while at home, you remember you need a printer cartridge for your office printer.  you drive to and from the office supply store.  this trip produces deductible business mileage.  True or false?

Answer 3.  TRUE.  The IRS allows business mileage for trips to temporary work locations.

Question 4.  You do your business with no office.  Your round trip from your home to a business meeting is not deductible.  True or false?

Answer 4.  TRUE.  The no-office taxpayer incurs a personal non-deductible commute to his or her first business stop and from
the last business stop back home.

If it is not practical for you to have an office in your home, then you need yo pay close attention to the temporary work location rule.  The IRS defines a “temporary work location” as any location where you perform services for one year or less.[/vc_column_text][us_image image=”1993″][/vc_column][/vc_row]