Deducting mileage when I travel to client multiple times a week?

[Ihaveallthequestions]

SITUATION:

I have an LLC and I have a client that I travel to their office about 3 times every week. Sometimes I go to events for them (though not currently). It's sporatic so I might only go there once a week. Or everyday in the week. Really depends on if there's something I need to do there that I can't do from home. They are about 45 miles away, so 90 miles round trip. 

QUESTIONS:

Is all my traveling to their office deductable? - I know the IRS might consider this commuting. So I'm unsure.

Is the entire round trip deductible or is it only on the way there?

Last, if I fill up gas for driving there, should I pay using my personal account or the company account? - I only deduct mileage and this is my personal vehicle but does it matter which account I use?

[Opus 17 · Accepted solution]

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@Ihaveallthequestions wrote:

SITUATION:

I have an LLC and I have a client that I travel to their office about 3 times every week. Sometimes I go to events for them (though not currently). It's sporatic so I might only go there once a week. Or everyday in the week. Really depends on if there's something I need to do there that I can't do from home. They are about 45 miles away, so 90 miles round trip. 

QUESTIONS:

Is all my traveling to their office deductable? - I know the IRS might consider this commuting. So I'm unsure.

Is the entire round trip deductible or is it only on the way there?

Last, if I fill up gas for driving there, should I pay using my personal account or the company account? - I only deduct mileage and this is my personal vehicle but does it matter which account I use?

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1. It depends on where your regular place of business is.  You can deduct mileage traveling to other work places.  Your regular place of business might be an office.  Or it might be a home office.  A building contractor who works on many different job sites but maintains a home office where they do their administrative work (billing, scheduling, calling customers, etc.) can have their home be their regular place of work, even if it does not meet the slightly different rules for a deductible home office.  If you have no regular place of business, then your mileage to any work site is your nondeductible "commute."

2. Transportation to and from secondary work sites is deductible (away from and back to your main place of work).

3. Your company can reimburse you tax-free for expenses you prove (accountable plan).  But, you then have to account for that when you take the deduction.  For example, if you claim 1000 miles at 56 cents per mile** but get $200 in tax-free gas from the company credit card, your deduction on schedule C will be $560 minus $200 = $360 dollars.

**it's about that, I'm too lazy to look up the exact 2020 figure

See publication 463, chapter 4.

https://www.irs.gov/publications/p463

[Ihaveallthequestions]

WOW thank you! Thats exactly what I was looking for. 

Looks like I'm better off paying gas out of personal account and just deducting the mileage instead.

As for home office, I more or less operate like a building contractor so my home is my office and travel would then be deductible. 

This is great news and very helpful! Thank you again!

[Opus 17]

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@Ihaveallthequestions wrote:

WOW thank you! Thats exactly what I was looking for. 

Looks like I'm better off paying gas out of personal account and just deducting the mileage instead.

As for home office, I more or less operate like a building contractor so my home is my office and travel would then be deductible. 

This is great news and very helpful! Thank you again!

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For a single member LLC treated as a disregarded entity and reporting on a schedule C, it basically works out the same if you claim car expenses as work expenses, or if the company "reimburses" you, except that claiming the expenses yourself is a lot less paperwork.  Most people find the standard mileage rate to pay off more than the actual expense method (although that may not be true for brand new luxury vehicles), and it is certainly less paperwork.