My tax person, an enrolled agent, simply lists 75% of mileage as business. I might lose a penny here or there, but it's simple, and he says that doesn't raise red flags. les b Conrad Hoffsommer wrote: > 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. >
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