W2 + self-employed (mileage deduction question)

[ruddgambit]

What is the name of your state (only U.S. law)? CA

I am a W-2 employee from M-F 9-5. (location 1) Taxable gross ~ $70,000.

I am also self-employed at two locations on the weekends. (location 2 and 3) These two locations are 400 miles apart. I drive from 2 to 3 TWICE a month = 19,200 miles per year.

The total income received from work locations 2 and 3 for 2009 is $2. (yes $2) All work done at locations 2 and 3 are strictly for my family. Basically, I volunteer legitimate professional services for a disabled family member but I cannot claim this person as a dependent.

My question is, can I deduct the standard mileage for commuting between locations 2 and 3 even if I didn't make any substantial income from this?

Thank you.

 

[justalayman]

So, who is your employer (on the weekends)

 

[HappyWanderer]

You have a complex set of circumstances. How did you earn the money? What did you do for it?

This is a very basic facts and circumstances issue. See your tax professional. The answer you put on the form is one thing, the REAL answer is another.

 

[LdiJ]

What is the name of your state (only U.S. law)? CA

I am a W-2 employee from M-F 9-5. (location 1) Taxable gross ~ $70,000.

I am also self-employed at two locations on the weekends. (location 2 and 3) These two locations are 400 miles apart. I drive from 2 to 3 TWICE a month = 19,200 miles per year.

The total income received from work locations 2 and 3 for 2009 is $2. (yes $2) All work done at locations 2 and 3 are strictly for my family. Basically, I volunteer legitimate professional services for a disabled family member but I cannot claim this person as a dependent.

My question is, can I deduct the standard mileage for commuting between locations 2 and 3 even if I didn't make any substantial income from this?

Thank you.

If you were my client, I wouldn't agree to letting you do it. It is not work you are doing with the intention of earning money upon which to make or supplement a living.

 

[ruddgambit]

So, who is your employer (on the weekends)

I am self-employed. I work by myself. No other employees.

 

[ruddgambit]

How did you earn the money?

I am a nurse practitioner by profession.

What did you do for it?

Interpretation and household duties for my family member.

 

[justalayman]

You are missing the point. For this to be a business expense, you have to be employed by somebody, or in your terms, contracted to perform services to somebody. Other than that, how do you justify the travel?

Unless you can support it as an actual business activity, it simply looks like a scam to get your travel as a write off.

 

[ruddgambit]

If you were my client, I wouldn't agree to letting you do it. It is not work you are doing with the intention of earning money upon which to make or supplement a living.

Thank you for your advice. I appreciate your candor.

This family member has promised me a small piece of property upon their death if I take care of him now.

 

[ruddgambit]

You are missing the point. For this to be a business expense, you have to be employed by somebody, or in your terms, contracted to perform services to somebody. Other than that, how do you justify the travel?

Unless you can support it as an actual business activity, it simply looks like a scam to get your travel as a write off.

Thanks. I definitely see your point. I would not ask if for any advice to commit tax fraud. Payment will be rendered upon death of the family member.

 

[justalayman]

I'll defer to LdiJ on if that is a practical solution but this are a few thoughts:

Unless it is contracted, I suspect it would be problematic. Even if contracted, I have my doubts especially since, if it is considered to be compensation, you would have to claim it now in some manner.

 

[ruddgambit]

Thanks very much. Better safe than sorry. All the best.