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  1. #1
    Join Date
    Mar 2009
    Location
    Michigan
    Posts
    6,808

    Default Business Mileage and Moving Expenses

    (1) Since I'm an independent contractor - does that mean the mileage to the job site is considered Business Mileage?

    (2) I worked 2 events at this position in Detroit, MI. I had also worked one event in Lansing, MI. I relocated after the third event worked. 90 miles. I continue to work as a contractor for the same company. I also now have two more similar positions, and have held a couple brief jobs. So are my moving expenses considered an itemized deduction or no? (My job hunting records will also reflect that much of my job search was in Lansing)

    thanks! Can't afford a $300 accountant....

  2. #2
    Join Date
    Sep 2010
    Posts
    19,901

    Default Re: Business Mileage and Moving Expenses

    Most likely your travel from your home to the first job site (and back) is NOT deductible. See Example 3 in the Car Expense section of this http://www.irs.gov/publications/p463...blink100033930

    Moving expense is covered here: http://www.irs.gov/pub/irs-pdf/p521.pdf. There's a flow chart to compute whether you meet the distance (you appear to) and the time tests (not enough information given here).

  3. #3
    Join Date
    Jul 2007
    Location
    Florida
    Posts
    2,344

    Default Re: Business Mileage and Moving Expenses

    What is your regular place of business? If it is your home office then travel to client sites would be business mileage. If your regular place of business is at a client's location then commuting is not deductible.

    Regarding relocation, you will have to meet the time test, which says for self-employed individuals that you will need to work full time for 78 weeks out of the first 2 years after you move. You can take the deduction before meeting the time test, but if you end up failing to qualify under that test you must go back and amend your return to remove the deduction and pay any additional tax liability that results.

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