AboutGerard L. Samoleski, CPA* Expertise Individual Income Tax, Business Income Tax, Partnership Income Tax, Estate Tax, Gift Tax, Tax Planning, Business Valuation, Divorce Tax. I can't answer legal questions as I am not an attorney.
Experience 10 years of Federal and State tax preparation for high-net worth individuals, including a major international accounting firm.
Organizations AICPA, FICPA, NACVA
Education/Credentials Bachelor of Business Administration (Accounting Major)- University of Miami (FL);Master of Science of Taxation, University of Miami (FL)
Awards and Honors Certified Public Accountant*, Certified Valuation Analyst, Accredited in Business Valuations. *Regulated by State of Florida
Question I deliver newspapers for my job. I have a question on when I can start keeping track of miles.
I pick up my newspapers at a distribution center, and then go to the first house. I assume I can start counting the miles once I pick up the papers, correct? And I would stop when I finish the last customer?
An accountant I went to last year told me that I could include the miles it took me to drive to work and back home, but only if there was a distinct place in my home in which I kept track of the mileage (i.e., a computer), and that computer was used "exclusively for the job." Is this correct?
Answer John:
If the newspaper company pays you as a subcontractor, your principal place of business is your home. Start tracking your miles from your house when you leave to pick up your stacks and stop tracking when you get home from your deliveries.
If the newspaper company pays you as an employee, your principal place of business is the distribution center and you would track miles as you have explained previously.
Please pay particular attention to the record keeping of proving your deduction starting at page 25. It is a quick read and worth every minute.
In so far as deducting things as your computer and cellphone, the IRS is very particular about you being able to identify the business use % of these items in a measurable way. For example, if your computer is mostly the family computer and you only use it to track your business activities through a software such as QuickBooks, you would probably be denied a deduction for the computer. However, you could deduct the cost of the software in full.
Thank you for your question and I hope this helps.
