business mileage (does not fit IRS examples)

[skdoorn12]

Client works as an account rep for Coke and is on the road every day.

Client "assigned" to an office 66 miles from home (132 miles round trip). He has no work space at this location. He is required to go to this location about 1 time per week for a meeting or pick up supplies.

All other days, client leaves from his home to service all accounts in his assigned territory which is outside the city he resides.

Coke reimburses client a fixed monthly rate of $375 per month plus "business mileage". The problem for the client is Coke subtracts the 132 round trip miles from his daily total because they say this is commuting mileage even though he is not going to his "assigned" place of work each day.

Client drove 35,000 miles in 2012 but only 13,785 miles are counted as business miles by Coke.

Seems he should be able to at least claim miles from first stop to the last stop of the day as business miles. Drive to first client and drive home from last client would be commuting.

Has anyone run into a similar situation to this before?

Up until last year, client was provided with a vehicle by Coke to use. This year, client was reqiured to purchase a car not older than 5 years and not less than $20,000 to be reimbursed for business mileage. Actual costs to car are much higher than reimbursements because of what Coke is calling commuting.

[Lion EA]

So, you enter his actual expenses or SMR and then enter his reimbursement, your software will calculate the 2106 amount. Sounds like first and last trips are commuting. At least you know he has a mileage log and a good paper trail with his expense accounts.

[kcjenkins]

Lion is right, and so are you, he is allowed to take actual business miles less reimbursements. Just because Coke does not reimburse in full does not mean he can't take it.

[jainen]

>>they say this is commuting mileage even though he is not going to his "assigned" place of work each day<<

Yes, it sounds like commute to me too. Longer than average, but within the range of normal and common. He regularly works at a fixed location main office, even though it is shared space and not daily. Presumably his territory is mostly regular, fixed locations. Review Pub 463 for the difference between travel and transportation, reasons his principal residence is not his tax home, and related issues.

[Guest Taxed]

Is Coke cheap or what?? I too have a Coke sales rep as a client and same situation. He has to use his personal car for company business and gets reimbursed for miles at a much lower rate.

Since he is W2 (not statutory employee) we do 2106 with the mileage that is logged and recorded and then deduct the employer reimbursement. have been doing this for 3 yrs now.

The only difference here is that he goes from his home to service various accounts and once a week has to go 50 miles to the regional office for a meeting.

All mileage is logged as required by IRS in a log book and all business entertainment is documented as well. This guy has been a salesman all his working life so he knows the drill!

[jainen]

>>gets reimbursed for miles at a much lower rate.<<

I'm not clear, in this and the original post, if the reimbursement is at a lower rate or simply for fewer miles. You can ONLY use Form 2106 for mileage that is approved by the employer.

[Guest Taxed]

>>gets reimbursed for miles at a much lower rate.<<

I'm not clear, in this and the original post, if the reimbursement is at a lower rate or simply for fewer miles. You can ONLY use Form 2106 for mileage that is approved by the employer.

Says who that 2106 mileage MUST be approved by the employer?? Employer does NOT approve a taxpayers tax return. It is up to the taxpayer to decide if the deduction is justified and can be supported under current law. Please keep the employer out of the taxpayers tax return!