Personal Use of the Business Vehicle


T

TObject

There is a business vehicle that is also used for personal
purposes (commuting). Following trip scenario, from point A
to point B to point C:

Point A - business office
Point B - business destination
Point C - personal residence

Which part(s) of the trip if any may be considered
as business use of the vehicle for tax purposes?

What if BC is more miles than AC?

Thanks!
 
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B

Bishop

There is a business vehicle that is also used for personal
purposes (commuting). Following trip scenario, from point A
to point B to point C:

Point A - business office
Point B - business destination
Point C - personal residence

Which part(s) of the trip if any may be considered
as business use of the vehicle for tax purposes?

What if BC is more miles than AC?

Thanks!
I'm no CPA (and Paul can correct me on this), but when I
have done this in the past:

Bus. Miles = Total miles for day - Miles from Home to Office (round trip)

Doesn't matter which is longest.
 
L

Lord Salt

TObject said:
There is a business vehicle that is also used for personal
purposes (commuting). Following trip scenario, from point A
to point B to point C:

Point A - business office
Point B - business destination
Point C - personal residence

Which part(s) of the trip if any may be considered
as business use of the vehicle for tax purposes?

What if BC is more miles than AC?

Thanks!
All mileage from A to B and from B to A is business use.

All mileage to or from C is commuting and personals use.

Distance doesn't matter.
 
T

TObject

Bus. Miles = Total miles for day - Miles from Home to Office (round trip)

This method seems fair. Could anybody else please confirm that it is not allowed?



Thanks!
 
P

PaulMaf

From: "Bishop" (e-mail address removed)
Date: 1/29/2005 6:59 P.M. Pacific Standard Time
Message-id: <J4YKd.471$Wi6.397@fe2.columbus.rr.com>
I'm no CPA (and Paul can correct me on this), but when I
have done this in the past:

Bus. Miles = Total miles for day - Miles from Home to Office (round trip)

Doesn't matter which is longest.
Change the formual to read:

Bus. Miles =Total miles for th day - (Miles from home to first place visited
on business X 2)

You have to account for the round trip of the "commute".

This way the formula takes care of the instance where a person might go
directly from home to a meeting with a client and then to the office or to
visit other clients.
 
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P

Paul A Thomas

TObject said:
Thank you for your reply. It seems unfair that distance doesn't matter.


How far you decided to live from your office is a personal, not business,
decision.
 
T

TObject

Paul A Thomas said:
How far you decided to live from your office is a personal, not business,
decision.
You don't understand. The question is about a trip from a business location,
(such as customer), straight to the personal residence, without going to
the office first.

If I live 10 miles away from the office. When I am going straight home from
a customer location that is 200 miles away; how come none of that 200 miles
is deductible?
 
A

Arthur Kamlet

Change the formual to read:

Bus. Miles =Total miles for th day - (Miles from home to first place visited
on business X 2)

You have to account for the round trip of the "commute".

This way the formula takes care of the instance where a person might go
directly from home to a meeting with a client and then to the office or to
visit other clients.
And be sure to deduct any personal mileage that is neither business
nor commuting.
 
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L

Lord Salt

TObject said:
You don't understand. The question is about a trip from a business location,
(such as customer), straight to the personal residence, without going to
the office first.

If I live 10 miles away from the office. When I am going straight home from
a customer location that is 200 miles away; how come none of that 200 miles
is deductible?
After meeting with your customer, stop at the office and update your
database or do some other work there, *before* coming home. Then,
except for the 20 miles round trip to and from home, it's all business
mileage.

I know an H&R Block preparer/teacher who lives very close to the
district office. She drives to the district office to pick up the
morning's paperwork, and then drives to her office location. After
closing her office, she delivers the evening paperwork to the district
office, and drives home from there. Business mileage to and from office
locations, personal mileage to and from home.
 

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