[pianotech] Mileage charge scenarii

[Dean May]

I have been audited- twice. When it comes to mileage they consider your
miles to the first customer as commute miles, as in not deductible. If you
commuted to a regular job you would not be able to deduct those miles. 

If you have an office 300 yards away from your home, you could commute to
your office, then drive to your appointments. Those miles would then all be
deductible. 

And for your return trip home make sure you stop by the hardware store, or
stop to talk to a customer about business. And repeat the mantra, "we live
in a free country."

Dean

Dean May             cell 812.239.3359 

PianoRebuilders.com   812.235.5272 

Terre Haute IN  47802


-----Original Message-----
From: pianotech-bounces at ptg.org [mailto:pianotech-bounces at ptg.org] On Behalf
Of Conrad Hoffsommer
Sent: Thursday, April 09, 2009 9:57 AM
To: pianotech at ptg.org
Subject: Re: [pianotech] Mileage charge scenarii

Paul T Williams wrote:
> 
> You go home between tunings everytime?

I don't believe he said that.  Vagaries of scheduling/needs may have 
have had those tunings in opposite directions.


   You're in for an audit, my
> friend if you don't!  You only count from home to tuning 1-  tuning 1 to 
> tuning 2-  tuning 2 to 3 and then tuning 3 to home...PERIOD.  If you 
> take 20 miles out to side-track to see you kid play baseball, you have 
> to omit those miles.


Actual business mileage is one thing and is the IRS deduction, yes, but 
what the customer sees as a mileage item on the bill is up to you.

Scenario 1:
If you go to a town 35 miles away, tune 5 pianos in and near town, all 
lined up by one of the customers (real scenario for me) do you:

a.	Charge every customer for ~70 miles?
b.	Split mileage five ways?
c.	Waive mileage for local scheduler and split mileage four ways
for 
remainder?
d.	Waive all mileage charges?
e.	Charge for 35/2/1/6/7 and eat the 35 miles back home?
f.	Charge a flat zone tuning fee for a radius distance range

(0-20/21-50/51-75, etc.)?
g.	Any of the above plus drive time?

IT DOESN'T MATTER!!!  The IRS wants to know total (86) for that day, and 
will allow a deduction at whatever it's current rate might be for those 
86 miles.
-The customers' charges are between you and the customers and should be 
agreed upon beforehand.
-All charges collected which are above the IRS allowed deduction are 
profit and taxed as such.

Scenario 2:
(again, real life)
First tuning in hometown, second in the previous scenario town 35 miles 
distant, third and fourth in town 35 miles beyond that.

Local 	- none
2nd 	- Charge for none/35/70?  plus time?
3rd/4th - Charge for 70/140?  plus time?
2/3/4th	- Split 140 three ways?

Customer mileage charges? That's between your conscience and your customers.

IRS deduction? 140+, including reasonable distance to restaurant for 
lunch. "Side trips" included, like foraging for food, in the total for 
the day are allowed as the main reason for the travel is business.

Disclaimer: I am neither a CPA nor an IRS agent.

Note: I've not (yet) been audited.

-- 
Conrad Hoffsommer, RPT - Keyboard Technician
Luther College, 700 College Dr., Decorah, Iowa 52101-1045
1-(563)-387-1204 // Fax 1-(563)-387-1076