article · September 2010
Can “Commuting Miles” ever be converted into Tax-Deductible Business mileage?
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- Be absolutely certain that your home-based business qualifies as a bona fide Principle Place of Business.
- Think differently about your “home.” No longer think of having a residence where you also have a business. You now have a Principle Place of Business where you also live. That is an important distinction.
- Make sure you actively engage in your home-based business before leaving for your “other job.” If you simply wake up, get dressed, have a cup of coffee, and then set out for the W-2 job, you will be commuting. Remember from above, going from the taxpayer's residence to a regular place of business or employment, is NON-deductible Personal Commuting.
- Make sure you again actively engage in your home-based business after returning from your “other place of employment.”
- Keep an activity log to prove that you actively engaged in your home-based business every single day before traveling to your “other place of business,” and again every single evening upon returning from that place of employment to the Principle Place of Business located in your home.