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Level 5
June 20, 2020
Question

BUSINESS MILEAGE FOR SOLE-PROPRIETOR

  • June 20, 2020
  • 23 replies
  • 83 views

My client is self-employed providing dental billing services to a few clients.

She works out of her home and drives to and from the clients to perform her services.

Is the mileage deductible on the car expense line of Schedule C?

Thank you.

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23 replies

Just-Lisa-Now-
Intuit Community Champion
June 20, 2020

Seems like it, you may want to pull up Pub 463 for the rules about business mileage.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
Level 2
June 20, 2020

Yes of course.  You will need the beginning miles ending miles and business miles - those are the miles

he drives visiting clients and can deduct from his office or home.  You also should include for no benefit his commuting miles that he drives to and from his office so you will wind up with total miles which include business miles which are deductible, personal miles (non-deductible and commuting miles (non-deductible).  You also need the make and model of the vehicle (e.g. 2018 Ford F150).  The first year you have a choice of using actual expenses (oil changes, repairs, car insurance, gasoline) or standard miles.  If you use the standard mileage rate you must stick to it for the life of the car and if you use actual expenses (you get a percentage of the costs  e.g. if business miles are 15% you get 15% of the costs).

 

 

Level 5
June 20, 2020

Since she drives to her clients and back I understand these are deductible business  miles and not treated as commuting miles. Is this correct?

Level 5
June 22, 2020

Driving from your home business to a client location or for business errands is not considered commuting, as long as you can meet the principal-place-of-business qualification.  Hopefully your client qualifies to have a home office by using a space exclusively and regularly for business.  

Level 2
June 20, 2020

Sorry, disregard my part about the office as I reread it as she not he is working from home.

 

BobKamman
Level 15
June 21, 2020

@wethepeople   She works out of her home and drives to and from the clients to perform her services.

There is nothing here that indicates she does any work at home, or does any work at home other than at the kitchen counters when she isn't baking cookies. 

It's almost as if the question is phrased to get an answer that assumes facts not stated.  

Level 5
June 21, 2020

She does administative work at home, such billing clients and other functions to help serve her clients.

BobKamman
Level 15
June 23, 2020

You are being vague about whether she has a separate office area, and how much time she takes to do this.  Is that on purpose?  I don't really care, but the IRS auditor will ask.