Business Mileage Question

[Nick-Zack]

I recently switched sales jobs and now my house is actually in my territory. For the past year I had a 40 minute commute to get to my territory. Back then I started tracking business mileage when I actually entered my territory.

Now that my house is actually in my territory I am guessing that all mileage from when I leave home can be written off. This company is also paying for my gas which the previous company didn't. Until I talk to my accountant I am going by the presumption that I will be able to deduct the standard mileage multiplier minus the actual gas cost that I am being reimbursed for.

If anyone can confirm this or tell me the actual deduction please let me know.

NZ

[Nick-Zack]

Is there a better place for me to post this?

[Wake up CALL]

You have not provided enough information to answer your question but you did provide enough info for me to state that in the past you were computing your mileage expenses incorrectly. "Your territory" makes no difference if you are employed by someone else except under very specific and constraining conditions for which very very few people will ever meet the IRS qualifications.

[prohornblower]

Uhh, I was under the impression gas expenses aren't deductible if they are re-imbursed by your employer. Or is this not what you are asking?

[Nick-Zack]

[ QUOTE ]
You have not provided enough information to answer your question but you did provide enough info for me to state that in the past you were computing your mileage expenses incorrectly. "Your territory" makes no difference if you are employed by someone else except under very specific and constraining conditions for which very very few people will ever meet the IRS qualifications.

[/ QUOTE ]

I am not sure what other info you need. I sell a product for a company that has territories. I have no fixed office anywhere other than my car and cell phone. Are you saying that I could have written off mileage in the past from home to the area that I could sell in?

[ QUOTE ]
Uhh, I was under the impression gas expenses aren't deductible if they are re-imbursed by your employer. Or is this not what you are asking?

[/ QUOTE ]

I am not deducting the gas expense. I am figuring the standard mileage and then lowering that figure by the amount of gas that I am reimbursed for.

Thanks for the replies. Let me know what other info you would need.

[rocketplayer]

since you have no assigned office you could write off your auto from the moment you leave your house and decide if actual epxenses or the mileage rate work better.

You also probably qualify for a home office deduction. Now these items are misc deductions and must exceed 2% of your AGI. In addition these deductions are not allowed for AMT purposes.

I suggest you see if your employer would classify you as a statutory employee. This would avoid the 2% AGI and AMT issues.

[Nick-Zack]

[ QUOTE ]
since you have no assigned office you could write off your auto from the moment you leave your house and decide if actual epxenses or the mileage rate work better.



[/ QUOTE ]

Thanks for the response. How do I treat the fuel reimbursement?

[prohornblower]

[ QUOTE ]

[ QUOTE ]
Uhh, I was under the impression gas expenses aren't deductible if they are re-imbursed by your employer. Or is this not what you are asking?

[/ QUOTE ]



I am not deducting the gas expense. I am figuring the standard mileage and then lowering that figure by the amount of gas that I am reimbursed for.

Thanks for the replies. Let me know what other info you would need.

[/ QUOTE ]

Oh, so I take it you aren't getting the 48.5 cents per mile? Either that, or you drive like a Hummer or something? lol.

[Nick-Zack]

[ QUOTE ]

Oh, so I take it you aren't getting the 48.5 cents per mile? Either that, or you drive like a Hummer or something? lol.

[/ QUOTE ]

I have no idea what you are talking about. The only reimbursement I get from my company is fuel and oil changes. At tax time I will be deducting the standard mileage allowance but need to account for the fuel and oil change reimbursement.

[Ray Zee]

nick, i think you would write off the mileage than subtract gas allowance if you wanted to keep it simple. you do have the option of tracking actual expenses and using that.
but you should at least visit a cpa once to set up how to best handle whatever your situation is, then decide if you want to do your own taxes.