Have no idea what your accountant did to you. If you have no other job and are working out of your home 100% of your business miles are deductible, not half of them, if you choose to use the mileage method of computing your deduction. If you have a job outside the home then mileage to that location is considered "commuting miles" and is not deductible. If you do shops along the way to that other job it is a gray area whether you can deduct the shop mileage. Neither this year's Turbotax nor any of the info I have found on the IRS.gov website would indicate that mileage only one way to a job is what can be deducted.

She has been a certified CPA for over 10 years. I tend to believe her, because last year when on Jury duty, I was paid for mileage one way, getting there. The govt. says your on your own getting home, ( and I heard that in the courtroom from an atty.) so, this would stand to agree with my experience. When married and my ex was getting mileage reimbursement, he got a percent of the miles driven, not the full mileage. My accountant did nothing to me, I do not have another job, am retired. This is standard, perhaps you'd better check on your end. With due respect, I have noticed alot of mis-information given on this forum, and, you don't have a license, do you?

I'm just going by what the IRS regs say and if you want to refer to them:

"Your principal place of business is in your home. You can deduct the cost of round-trip transportation between your qualifying home office and your client's or customer's place of business."

Can be found at [www.irs.gov] which is, so to speak, "the horse's mouth" since it is the IRS publications. Do what you like, it is no skin off my nose, but indicating that mileage only one way is the appropriate method is indeed "alot of mis-information given on this forum".

I'll call her and see what she says.

I think the operative words here are "qualifying home office."

Just to chime in here........I have always claimed mileage both ways. A couple of shoppers I know that were audited by IRS.........said that the auditors were thumbs up about them claiming both ways. My first year I went to an accountant and actually they were very confused about msing. I received bad info about several items. I contacted IRS and talked to two different agents to better understand what deductions I could take for my SCH C.



There is lots of opinions whether you can deduct mileage from home to first mystery shop. I received this info from another site: (The question was posed to FreeAdvice - for free legal advice for consumers and small businesses.)


QUESTION: I am asking this clarification question though on behalf of shoppers all over the country.

I shop part time and thus "work" out of my home (I use that term lightly in my situation because I do not claim a home office but I use my computer to search for assignments and input reports).

Thus, I travel from my home to the job site (retail site, restaurant, theme park, wherever I am assigned a shop) and then back home again.

Am I allowed to deduct the mileage between my home and the job? If I did have a qualified home office (such as many other shoppers do), is that a different situation?

I have heard different advice from no, it's not deductible because it is from your home to work, but have also heard that because it is not the typical job that the situation may be different.

Thank you for any advice I can get on this topic.

ANSWER: Yes, it is deductible because you are not going to a specific job site each day, but to different places. Also, I am willing to bet that they pay you as an independent contractor, which makes you self-employed, and thereby makes any mileage in conjunction with your job completely deductible.

Yippeeeeee........
thanks,bugs

And as for "qualifying home office", IRS states:

Your home office will qualify as your principal place of business if you meet the following requirements.

* You use it exclusively and regularly for administrative or management activities of your trade or business.
* You have no other fixed location where you conduct substantial administrative or management activities of your trade or business.


This is from Publication 587 [www.irs.gov]

I was told today by my accountant that you need a business license to claim being an Indepentend Contractor. You have to have space for your office and it has to be a room of it's own in your house. The dining room table doesn't count. The Volition.com IRS site says you can claim 48.5 cents on every mile for 2007. That is know as standard miles. I again called my accountant and she was under the impression for our business that mileage is deducted one way unless you travel and spend a night, then you get round trip...she is going to look into this further, and I'll know by Monday. There is alot of misunderstanding on this, but I think rules for Independent Contractors are the same. I have a business license, am certified and can claim utilities as well as internet deduction, phone bill and mamy more items. I think it pays to become your own business for tax reasons...then everything is according to the law, and you won't get caught making a no no. If you go to a professional, at least she will stand behind you in case of a problem. Many people do this for fun and free meals....they are not business's, should they be given the same benefits as a person that bothers to get a license and go through the correct procedures. Everyone could say oh I work at home, tax breaks. You must set yourself up as a business, and I recommend it.

Edited 1 time(s). Last edit at 03/29/2008 12:54AM by shop 4 u.

My BIL was an independent contractor for over 20 years........no business license.
As we all know, we sign an Independent Contractor Agreement with every ms company.
I don't know why your accountant is stating that you can not be an Independent Contractor w/out a business license. IRS sees us as self employed and Independent Contractors. The earnings of a person who is working as an independent contractor are subject to Self-Employment (SE) tax.


PS........about the Jury Duty....I did it last year and received round trip mileage.....it was simply based on mapquest or whatever they utilize to figure your mileage but it was roundtrip not one way. Perhaps, different states do different things.

Edited 2 time(s). Last edit at 03/29/2008 01:02AM by bugspost.

Maybe what we're arguing is different laws in different states. There are also different tax auditors, some are fine, others love to stick it to you...be careful. The atty. on jury duty told me the state pays for you to get there, they don't care how you get home, his words, not mine, and I got paid for one way mileage and a low daily fee. They used to give a % towards mileage for appraisars that traveled to different jobs as we do. I was married to a commerical Real Estate Appraiser and remember that...long time ago, hope they changed the rules, we'll see.

Actually there is not a lot of misunderstanding on this. Those of us who have been doing this for a long time have been filing the round trips without the requirement of a business license to be an independent contractor with no problems at all.

I have a friend CPA I used to send my clients to because it was the only one I could find who was really really thorough and reliable. We have chatted about mystery shopping issues including mileage from one or multiple vehicles from time to time when the CPA calls (because my former clients have lost their cost basis info and they know I am a pack rat and still have it all) Same CPA who walked me through the logic process of why Certification expense was not a legitimate business deduction, though I know a lot of folks claim it. Same CPA who kicked around the idea with me that if you are 1) paid a fee for a shop that requires you do something for which 2) the client also pays you, do you a) claim it all as the shop fee?(no because the client payment is a separate paying entity from the MSP); b) run a separate Schedule C for the client payments (technically yes because they technically are not fees or reimbursements from mystery shopping); c) gloss it a little and just treat the paying client as an additional MSP for which you have worked (because the total $ was under $500 for the year and could be considered a 'product' of mystery shopping without stretching too much).

Whether or not they do it for fun or not..........they still incur expenses...such as mileage, etc and should be entitled to deduct those costs by filing the SCH C. Now, granted some shoppers simply enter their fees received under OTHER INCOME on their 1040 and don't do the SCH C.........w/the deductions but I would assume that is more for the casual hobby shopper. As long as shoppers keep good records of their shops and expenses........I don't think they will have any problems w/IRS. But all shoppers should educate themselves on the rules. I am not interested in getting business license since I don't want to pay for one every year........yes, you have to here..........I only do about 15-25 shops a month....

Sometimes we get too much information on these forums, and I'm happier in my own little world......no kidding, you do have to get informed and not take others opinions as gold, as they might not work in your state. I started by getting my license as I thought (naive me) that I would do this alot more than it turned out to be. I find it really hard to make good money, so gave that thought up. The great part for me is working at home, being able to say yes or nay....love that part. The golden years mean redefing your life and doing something new. I never knew this industry exsisted. You do have to have a buck in your pocket, because, fast food or doughnut shops would have me lose interest quickly.

Have you ever done Hotels?

Irene

I've been an indep contrac 26 years with my home repair business. I've used TurboTax 10 years, and here's the dirt as of 2006. Haven't finished my 2007 yet.:

My home office can be a room or PART of a room used EXCLUSIVELY for work. Since I work all over the county and in NYC, my primary place of business is that home office, its phone, etc. Phone must be ONLY for business. Then percentage of my heat, rent. etc. I use 3 closets EXCLUSIVELY for materials, and include that in my percentage of the apt. If ever audited, you take a photo showing that the area is used ONLY for work. This would apply to shopping too. You must show exclusivity, which is easy to arrange if necessary.

Sleeping overnight is called BUSINESS TRAVEL, which is different from BUSINESS MILEAGE used on your car, diff rules.

Going TO and FROM my jobs AND between jobs is business mileage because I'm leaving the home office. I can also deduct part of my health insurance, as I pay individually. If you ask 3 diff accountants and 3 diff HR Blocks, you'll get 6 diff answers, but you have to judge. I have chosen to trust TurboTax for 10 years. That's the program most accountants use too.

These rules change slightly every few years. If there are vast diff this year, Flash, let me know before TurboTax gives me a heart attack.

I have a business certificate because I collect NYS sales tax. In NY, you don't need a license unless the job itself requires a license, such as plumbing, hairdresser, home renovation, etc. Shopping doesn't require licensing.

I have been a psychologist in private practice for 25 years. The first two years I had a posh down town office, and since I worked both places, only half of my mileage counted. But after my accountant (they didn't have Turbotax is those days, lol) realized that my home business was a DIFFERENT business than my office, we started to count both directions and depreciation on my car. Once I worked only at home, 23 years worth, I deducted everything. I purposely use a different computer for work than play, expenses are deductible, I have three phone lines (one cell and two land lines) and one of those are deductible. The IRS has been instructed to encourage small business, my IRS buddy has told me, so they are being loose. They hope it will save the economy (laugh).

Use Google, guys, everything Flash, Joan, Bugs and Sneakers have said are true and easily verifiable. The IRS Site is easy to use, it only took me 10 minutes to look all your questions up.

Beth

Iced coffee, where? It was 86 today....... love iced coffee.

When we are young we date to reproduce; it is a survival instinct.

When we are..... middle aged, why would we? Give up making my own decisions? Never! But if you want to do it, do it right. I'll explain it to you, Irene. My endowments are real; what should I do, strap them down? I am not afraid of my sexuality. For one hour, count how many flat actresses are on TV. Men think with their testosterone, they want some of that.

And I was a brunette all my life; I became a blonde on my 50th birthday; and guys just want to take care of me. It is not an unpleasant feeling, and I have fun. It is more lucrative than MSing (laugh), and you don't pay taxes.

And, Irene, do you really think all men are wrong? Of course, you think all of us are wrong, too. (See income thread).

My post was partly a joke (meaning I brought it up to be funny, but it has many elements of truth.) You just had to have the last word.

I have to go to bed now. I am going to the opera and the Hyatt for dinner tomorrow. Will be up late. Cost of the shop (lol) $150 if he doesn't bring me flowers. Expenses: $20 for a high quality blondeing product. I will have to remember to check the bathroom and get the waiter's name.......no, wait, not this time.
Beth

My last word would be....misinterpetation on your part.