11/20/2023 0 Comments Contractor mileage reimbursementThen, once a week, you leave this office and drive five miles away to meet with a client. You drive to and from this office every day. Say that you have your own small business office two miles away from your home. Let's use an easy example to get a base understanding of how these two types of mileage work. Then you can go grab some nuggets with Szechuan sauce. So if you want to get some business mileage out of a trip from home, go to a temporary work location first - like a client meeting site. After all, they don't get a mileage reimbursement when they leave home. If you're a home-based independent contractor, then applying the rules as they are to you would be unfair to people who work out of separate business offices. And then, your first trip of the day - to McDonald's for the 20-nugget combo - would count as a business trip, right? If we followed the IRS rules in this instance, then your commute from the bed to the laptop would be your first trip to work. Now you're probably thinking, "What if my place of work is a home office?" How commuting miles work with a home office Driving between your house and an office building, for example, would be considered commuting. If a business mile takes you from one workplace to another, a commuting mile takes you between your home and a workplace. Unlike business miles, what the IRS considers "commuting miles" aren't tax-deductible. But it also counts if you head out for a business lunch, make a run to the post office or the bank, or head to Staples for supplies. You can be traveling between worksites and meeting locations, of course. In simple terms, any time you drive from one place of work to another, that's a business mile. It doesn't just cover rideshare and delivery drivers carrying passengers or takeout, for example. What counts as a business mile? The definition is more expansive than most people realize. The IRS lets self-employed people claim car-related tax write-offs based on the business miles they drive every year.
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