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Commuting miles- Sch C

Technical topics regarding tax preparation.
#1
RowTax  
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A buddy who is also a CPA tax guy, said he thinks that a schedule C taxpayer, such as a lady who cuts hair at her shop that is not in her home, would not have business miles to the hair cutting shop from her home and same for the trip home.

Do you have any thoughts on the idea that if the sole proprietor has a shop or office that they have non deductible commuting miles?
 

#2
JR1  
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Soliman case covered that. If she has no space at the salon to do her admin work, then her office is in her home and the miles would be biz miles.
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#3
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Soliman case covered that. If she has no space at the salon to do her admin work, then her office is in her home and the miles would be biz miles.


I believe this would only be true if the taxpayer has a "qualified home office" (area used regularly and exclusively for business purposes). The return would then also contain a 8829.
 

#4
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Would a “safe harbor” home office qualify (but I agree a home office would be necessary)?
 

#5
TrueTax  
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Are you referring to the simplified method ($5/sq ft deduction rather than actual costs)? I believe the same exclusive and regular use requirements must be met for the space regardless of whether actual costs or the simplified method are used to claim the deduction. Thus, if you are taking a simplified method deduction, the space should qualify as a home office generally and mileage driven from the home office and another work location would be deductible regardless of whether the simplified method or actual costs are used.
 

#6
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When the Soliman case first came out, many interpreted it as JR1 is interpreting it. However, in light of a Tax Court Case sometime around 2011, (Bogue TC Memo 2011-164) some practitioners and CE providers have questioned this liberal interpretation and now adopt the premise that the home office must qualify for the business use deduction. Since the administrative work is probably minimal, I would surmise no exclusive business use of the home, and therefore, no mileage deduction for miles between home and salon. Mammondee points this out in post #3.
 

#7
JR1  
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Yeah, maybe. What's minimal? Soliman's was likely pretty minimal, too. I trust the client and don't ask questions that you don't know the answer to...explain that it must be exclusively used for biz and separate space and let them tell you. The point is that they can't do any paperwork at the chair...so even if it's only a few hours a week, if it's exclusive use, I'm in.
Go Blackhawks! Go Pack Go!
Remembering our son, Ben Jan 22, 1992 to Aug 26, 2011.
For FB'ers: https://www.facebook.com/groups/BenRoberts/
 


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