Tax Question Mileage (Accountants help?!?)

2 Replies

Hi, I have a scenario I am hoping someone can assist me with for mileage deductions.

I live at Property A. I work at Corporation B (primary job and unrelated to real estate). All my mileage is typically showing clients properties (real estate agent and secondary job). I go from Corporation B to property often and have been keeping track of that as I believe there are no issues with that. My main question is going from my property I live at to a property to show a client the property. I do this as well and usually only show properties a few times a week. Would the home to a property count since the property is not my business and is merely me showing a client a property -- part of my secondary job and what I would think would be a temporary location since we likely won't ever visit it again.

I was also told to include mileage on schedule C as part of my income... I wasn't sure what was meant there. What specifically would be included on the schedule C and why would someone advocate for that?

Disclosure: I will hire an accountant before tax season -- just trying to stay ahead of curve in tracking my miles. 

@Matt N. no, you cannot deduct the mileage from your personal residence to the place of business (office, property showing, etc). The IRS views this as a commuting expense, which is personal and non-deductible.

Unless: you have a home office. Now it's "office to office" and a business trip, therefore currently deductible. This is why I advocate that all my clients have a home office (if they can qualify for one) no matter how small.

Schedule C is where you report your profit and loss from business activities. So this is the schedule you will report realtor business on (I'm assuming you are a realtor, you didn't specify). Business miles will be a currently deductible expenses reported on Schedule C which will reduce your realtor income.

Recommend getting a CPA. Hope this helps!

Brandon Hall is completely correct on mileage. Don't forget you can deduct meals & entertainment if your out with clients, any thank you gift or card, postage etc.

There is an app on your fone you can download, you can get the free version & it tracks the mileage for you.

Also find a CPA, an accountant or someone you trust to make sure you are getting all the deductions possible.