Can a personal trainer at a gym deduct business mileage? The facility hires him except he collects the fees from customers in exchange for paying them "rent".

[Just-Lisa-Now-]

"Re: Can a personal trainer at a gym deduct business mileage? The facility hires him except he collects the fees from customers in exchange for paying them "rent"."

Mileage?  What kind of business miles is he driving if he works in a gym?

You might want to reword your second sentence into a question.

[itonewbie]

Your statement is contradictory.  Is he really hired by the gym?  If so, why does he pay "rent"?

If he is indeed an independent contractor and those are business miles, yes.  Otherwise, 2% misc deduction is suspended by TCJA although it may still be allowed for states that do not conform.

[Small town]

He meets regularly with members of the gym. Instead of the gym paying him, he collects members fees and then pays the gym facility for its use. This way they avoid having to send him a 1099. I would agree he would be an independent contractor. Are miles driven from his home to the facility then back home business or commuting?

[IRonMaN · Accepted solution]

Commuting.

[itonewbie]

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@Small town wrote:

...Instead of the gym paying him, he collects members fees and then pays the gym facility for its use. This way they avoid having to send him a 1099...

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If he's not an employee of the gym, his clients at the gym sign up with him independently as their personal trainer, and his only relationship with the gym is gaining access to the facility (exclusively or otherwise) - and I would presume that there are clauses that limit the gym's liability for his professional activities, etc., I don't see why the gym would be paying him and how this could avoid having to send him a 1099.

Under this arrangement, he doesn't receive any pay from the gym and the rent or commission (or whatever it may be called) is an expense of his that needs to be accounted for separately.

If the gym is supposed to pay him for certain services he renders to the gym, a 1099-MISC would have to be issued if that amount is $600 or more.  Generally, you can't offset whatever expense he has to pay the gym against that amount.

[Small town]

The gym has him there to teach classes. Instead of the gym collecting member fees for the classes and then paying him, they have an agreement for him to collect the fees and then pay them for the use of the facility. In the past years the gym collected the fees and then paid him to teach the classes.

[qbteachmt]

"This way they avoid having to send him a 1099."

But he should send them a 1099-Misc with Rent in Box 1, most likely.

This is commuting to his place of business, obviously.

[itonewbie]

Exactly.  If the members sign up with him directly and he pays the gym a fee for the privilege of gaining access to the facility, there is nothing to offset.

[Small town]

The facility issued a 1099-Misc for Nonemployee Compensation for some classes taught. So the personal trainer has the fees he received from members in addition to the 1099. Can the 1099 nonemployee compensation amount be offset with a business mileage deduction?

[Just-Lisa-Now-]

Not commuting...is he driving any business miles?

[Small town]

He drives from his home to the facility and back home. In that definition it is commuting mileage. My question is since he benefits the facility by them having a personal trainer and classes, although he is not treated as an employee, can his mileage be business if it is for the benefit of the facility? 

[IRonMaN]

No.  I'm not really sure what "benefitting" has to do with anything.  Your clients benefit from you showing up in your office during tax season.  Do you consider your driving to work every day business mileage?

[qbteachmt]

Your client is Commuting to his/her place of business. You keep telling us that fact.

"He drives from his home to the facility and back home"

That = commuting. Have you looked at the little IRS circular diagram that explains Commuting vs Business? Example:

He drives to the gym for lessons. Then, to One client's home, then another client's office, then his own Home or the Gym. Follow the Circle.

[Just-Lisa-Now-]

Top of Page 12

https://www.irs.gov/pub/irs-pdf/p463.pdf

[Small town]

This is for the same personal trainer. Would specific food purchased to weight train as a personal trainer be a business expense to the trainer? Any thoughts or opinions?

[itonewbie]

No.

You seem to be going out of your way to try to deduct all sorts of expenses for this personal trainer, except these are not sound ideas grounded in tax law or regulations.  Is this worth holding up the return for?

Before you propose more deductions, you should ask yourself whether you have substantial authority or reasonable basis for taking the position.

[itonewbie]

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@Small town wrote:

This is for the same personal trainer. Would specific food purchased to weight train as a personal trainer be a business expense to the trainer? Any thoughts or opinions?

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The truth is that anyone could give you a yes or a no for an answer - it won't validate or disprove anything and you certainly shouldn't rely on it to prepare your client's return.  And why should you trust someone you don't know on the internet?

If you want a response you could use (with further research), you should consider providing your technical basis with the question.

[qbteachmt]

"Would specific food purchased to weight train as a personal trainer be a business expense to the trainer?"

What food and who is eating it?

Example: Your client, the trainer, buys food to sell to clients. Yes, that would be COGS and Income. No, anything the trainer eats is Personal. We all need to eat. Unless there is a medical prescription for some special limited diet foods, there is no Write Off for personal food.

Are you doing any of your own research for IRS regulations? Or, just asking the Web, taking the easy way out?