Eliminate Commuting to Your Office

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Sandy Botkin
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Question of the week, “I am a Realtor. I have been told by my accountant that if I stop at the post office or the bank first from my home, my entire mileage to my main real estate office is deductible. Is this correct?”

tax deductions, taxbot

Sandy’s response: I hope you didn’t pay for this advice because this is absolutely WRONG! Going to a regular business stop such as the bank or post office isn’t deductible and doesn’t eliminate commuting. How do you avoid this? There are two ways:

  1. Make your home your principal place of business. Thus, all mileage to and from your second real estate office would be deductible. See my prior postsTaxbot, deductr, deductor, deducter, taxes, business taxes, how to reduce my business taxes, business tax write offs, tax deductions, car tax deductions, sandy botkin, irs, irs audit, CPA, mobile expense tracker, mobile mileage tracker for more information on this or get my book, “Lower Your Taxes: Big Time.” Use Taxbot to track the mileage so that you have solid proof in case of an audit.

  2. Alternatively, go to a temporary stop on the way to the office.  A temporary stop is something that is expected to last for less than one year. Thus, going to a client-listing appointment, seminar, convention, etc. would qualify as a temporary stop. Again, using a tax tracker such as Taxbot would be crucial here.
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