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Accountants -Tax Question on Mileage
I also posted this on the MM board, but I thought if there were any accountants out there, they could help me with my question.
My husband has an interview this week with a home remodeling company for a sales rep position. After hearing what the lady told him regarding the postion, I really think it's something he would enjoy. She told him that he would have two appointments per day, and they could be 60 miles away sometimes. That is no big deal to him, as he loves to drive.
My question is - if the company does not reimburse for the mileage (I'm guessing they don't since it's a sales position???), are you able to deduct the mileage and/or gas, car maintenance, etc from your taxes. Going back to my tax class in college, I believe you can if you own your own business, but I wasn't sure about this scenario since he wouldn't be owning his own business and would be an employee of a company.
Thanks!
TTC since June 2012
Re: Accountants -Tax Question on Mileage
I think you can, if he's not already reimbursed by the company.
http://www.irs.gov/newsroom/article/0,,id=163780,00.html
http://turbotax.intuit.com/support/iq/Employment-Expenses/Can-I-Deduct-Mileage-as-an-Employee--/GEN83736.html
http://www.libertytax.com/irs-mileage-allowance-rates.html
Hi,
Unfortuantely, he cannot deduct these expenses. I am getting my LLM in tax and work in a low income tax clinic. Businesses can deduct "ordinary and necessary business expenses." However, if he is not the owner of his own business, then he cannot personally deduct them on his own tax return--the company gets to take the deduction. The IRS doesn't like when the same thing is deducted twice! (understandably I suppose). You are right. I hope this helps.
PS. The clinic has clients that take these deductions and the IRS comes after them; it's a common misconception. However, it is possible they are deductible for some other reason than business (although I cannot imagine what this other reason would be).
Unfortunately this is really bad tax advice, based on the OP question.
The employer can't deduct the business expense, if they aren't reimbursing the employee, which is the way the original poster stated the situation. How can the employer deduct an expense they never paid?
Since the employer is not reimbursing the employee, the employee can deduct the mileage at the standard IRS rate. This is stated in Pub 17 http://www.irs.gov/publications/p17/ch28.html
You - or your tax prepare, will complete Form 2106, and include the figure on your Schedule A for itemized deductions.