I'm retired and work part time (infrequently) for a car dealership as a driver. They consider me an independent contractor. The drive to the dealership is about 16 miles and costs me about $4.25 in gas. Can I deduct that from my earnings from them?
"BudE" wrote
The dealership would be considered your regular place of business - and therefore non-deductible commuting. FWIW: One of my retired clients does the same thing, and he's treated as an employee. I suspect that's for liability purposes. Wonder how your employer would handle things if you smacked up a car.
-- Paul A. Thomas, CPA Athens, Georgia
No. Commuting is not deductible. You haven't established another place of business activity. You are also probably misclassified and should be an employee - see form SS-8.
Commuting mileage is not deductible, merely a personal expense.
Actually this activity is properly independently contracted. Drivers are given a car to drive to a distant location, or the group is driven to a distant location. He then has to get that car to the other location within a certain time period, and otherwise he does the job on his own. All the car dealers around here have already researched the issue. The only thing I didn't care for was the fact that get the car I wanted in my color (blue), it had to be driven to Columbus from Augusta. New cars I think still should not be driven too fast for first 500 miles, but I have no way of knowing how fast he made that trip. But the Sable IS a sturdy well built car and I'm satisfied. (13,000 miles in three years!) ChEAr$, Harlan Lunsford, EA n LA
I'm still going to disagree with Mr. Lunsford based on one point: He's doing it for a single client, not multiple clients. Although it's possible for ICs to have only one client, that's a point that strongly favors an employment relationship. If this issue is "530'ed" in your part of the country, fine - but that's the exception, not the rule.
How does any employer handle it? Just a rough estimate but I guess there has been billions car accidents that involved employees going to and from work in the past.
"Allan Martin" wrote
No doubt. But I'm referring to when the contract driver is driving the dealer's car (from one dealership to another, to/from the auction lot, etc is most common) and there's an accident. There was a car fire here last summer, while the car was on the carrier, in the dealer lot. The carrier's insurance (not the dealer) had to cover the damages.
If the IRS employer/employee tests were considered, the 18 wheeler car hauler owner/operator, who hauls for various dealers and distributors, carries insurance specific to his business, uses and maintains his own equipment, buys his own fuel, and can zig zag across the country on his own schedule, would qualify as an independent contractor. The retiree, who drives vehicles owned or controlled by the dealer, burns fuel supplied by the dealer, and drives a straight line from dealership to dealership, when and where directed by the dealer, would likely be determined to be an employee of the dealer. I doubt that the retiree's personal auto insurances carrier would be eager to pay a claim if he wrecked a dealer's car while driving for hire. Nor would the dealer's insurance carrier and floor plan underwriter be thrilled that the dealer is putting his cars in the hands of an uninsured or under insured driver. A personal injury attorney would surely look to the deep pockets of the dealer if the driver was at fault in a wreck. Seems the dealer is taking a substantial risk to avoid payroll taxes and expenses.
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