mileage deduction question

[consultpsych]

I live near my W-2 employer hospital where I go every day, and not-so-near my 1099 moonlighting hospital sites where I go only occasionally. I believe I can deduct mileage from the W-2 hospital to a 1099 site.

But if I establish a home office, primarily for managing the payments/finances, keeping my moonlighting schedule, as well as taking night call and EMR use, all related to the 1099 jobs, can I deduct the daily mileage between that home office and the W-2 job as well?

Could I reduce my audit risk by using the home office as a base for deducting miles traveled from and to it, but not deducting the home office itself? It shouldn't be a big savings to deduct the home office since it would be small and I co-own my home with my father. Our arrangement has included me paying him, and then he is taking the deductions from things like mortgage interest. (Don't worry, it's a more than fair arrangement. He gifted us the down payment, so I'm more than happy to let him take those deductions.)

[jfoxcpacfp]

With sincere respect, your situation is a bit too complicated for a comprehensive answer from this forum. I don't mind giving detailed information but there are too many moving parts going on here. Hopefully, you are working with an experienced CPA or EA who can advise you.

After re-reading, I can answer the question in the 2nd paragraph. You cannot deduct the mileage between your home and your main job, as you are commuting.

[VagabondMD]

Wow, I am going to audit you just for asking the question!

[consultpsych]

LOL, I didn't realize how complicated!

Maybe a simpler, related question: can I deduct, on schedule C, traveling from a home office to a job site, if that job site is for an employer that pays me on a W-2? The home office is for work that gets me a 1099.

[jfoxcpacfp]

Is it to do work that is paid on your W2? If so, no. If it is for other work that your W2 employer also pays by 1099, then, yes.

[DarrVao777]

jfoxcpacfp wrote:

With sincere respect, your situation is a bit too complicated for a comprehensive answer from this forum. I don’t mind giving detailed information but there are too many moving parts going on here. Hopefully, you are working with an experienced CPA or EA who can advise you.

After re-reading, I can answer the question in the 2nd paragraph. You cannot deduct the mileage between your home and your main job, as you are commuting.

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Assuming the management of finances / management of moonlighting schedule / night call / EMR use in the home office is related to the W2 job, couldn't the OP deduct mileage between the home office and main W2 job?

 

[VagabondMD]

DarrVao777 wrote:

jfoxcpacfp wrote:

With sincere respect, your situation is a bit too complicated for a comprehensive answer from this forum. I don’t mind giving detailed information but there are too many moving parts going on here. Hopefully, you are working with an experienced CPA or EA who can advise you.

After re-reading, I can answer the question in the 2nd paragraph. You cannot deduct the mileage between your home and your main job, as you are commuting.

Click to expand…

Assuming the management of finances / management of moonlighting schedule / night call / EMR use in the home office is related to the W2 job, couldn’t the OP deduct mileage between the home office and main W2 job?

 

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Maybe you can deduct the mileage from walking up and down stairs to change clothes from managing your W-2 job and driving to your 1099 job, and vice versa! Or did I get it backwards?

[jfoxcpacfp]

DarrVao777 wrote:

jfoxcpacfp wrote:

With sincere respect, your situation is a bit too complicated for a comprehensive answer from this forum. I don’t mind giving detailed information but there are too many moving parts going on here. Hopefully, you are working with an experienced CPA or EA who can advise you.

After re-reading, I can answer the question in the 2nd paragraph. You cannot deduct the mileage between your home and your main job, as you are commuting.

Click to expand…

Assuming the management of finances / management of moonlighting schedule / night call / EMR use in the home office is related to the W2 job, couldn’t the OP deduct mileage between the home office and main W2 job?

 

Click to expand...

Yes, he could, but only as an employee business expense on Schedule A, subject to the 2% of AGI floor.

[consultpsych]

So the Schedule C deduction for someone with W-2 income and 1099 income is only for travel from 1099 site to 1099 site, never from travel between home and a site, and never for travel between a W-2 job and a site.

If that's the case, I'd be going from a home office (if I took the trouble to set one up) to a hospital an hour away, maybe 20 times a year. Might not be worth the trouble of keeping a home office and a mileage log.

[jfoxcpacfp]

consultpsych wrote:

So the Schedule C deduction for someone with W-2 income and 1099 income is only for travel from 1099 site to 1099 site, never from travel between home and a site, and never for travel between a W-2 job and a site.

If that’s the case, I’d be going from a home office (if I took the trouble to set one up) to a hospital an hour away, maybe 20 times a year. Might not be worth the trouble of keeping a home office and a mileage log.

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No. It's for travel to any 1099 site. The theoretical question I responded to just before this was for travel from home to a W2 site with the implication that the W2 job required a home office. For traveling to a W2 site, you are either 1) commuting or 2) have employee business expense mileage which would be reported on schedule A. The answer really does depend upon the specifics of your personal situation.

[LTacker]

Here are a couple of links that may help you determine if your W-2 and 1099 miles are deductible.

In the first link, note the reference to deductability of miles for temporary work locations

The second link is for a chart for those that are more visual. NOTE,  Do not use the chart if your home is your principal place of business.

With a home office as a principal place of 1099 business in mind, it may worth considering setting up a home office that is used regularly and exclusively and taking the simplified method for the home office deduction.

 

https://www.irs.gov/publications/p463/ch04.html

https://www.irs.gov/publications/p463/ch03.html#en_US_2013_publink1000136362

[jfoxcpacfp]

LTacker wrote:

With a home office as a principal place of 1099 business in mind, it may worth considering setting up a home office that is used regularly and exclusively and taking the simplified method for the home office deduction.

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fyi, I rarely find the simplified method to be superior, especially in doctors' homes. It is irreversible for any year elected, should you later discover you should have taken actual expenses. In your case, consultpsych, more analysis would be advised regarding the co-ownership issue before making any recommendations.

[consultpsych]

Thanks everyone. Johanna, I will consider getting professional advice. Although part of me just says, "maybe it's not worth it."

[LTacker]

Hi Johanna,

I would normally agree with you but in the case of co-ownership, 1099 side work and not meeting clients, I suggested it might be worth considering as a means to make more of the miles deductible and not having to deal with recapturing depreciation when selling the home since it's co owned with his father. It's definitely something that would need additional personal inquiry with the taxpayer.

[jfoxcpacfp]

consultpsych wrote:

Thanks everyone. Johanna, I will consider getting professional advice. Although part of me just says, “maybe it’s not worth it.”

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Sometimes it isn't   It really depends on the advisor. Financial advice is not a commodity.