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Travel Expenses Multiple Positions

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  • Avatar StateOfMyHead 
    Participant
    Status: Advanced Practice Provider
    Posts: 82
    Joined: 01/01/2019
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    I have several part-time/PRN employed positions and 1 as 1099. Two of the W2 jobs are a significant distance from home so several times a month I stay in a hotel. My 1099 job is basically 1/2 way between the hotels and my residence. I would like to expense the hotels since they are totally work related and often, although not always, cut down my travel time to the 1099. Appreciate your thoughts.

    #220654 Reply
    jfoxcpacfp jfoxcpacfp 
    Moderator
    Status: Financial Advisor, Accountant, Small Business Owner
    Posts: 7523
    Joined: 01/09/2016

    I’m not sure how going to stay in a hotel that is twice as far away from your home as the 1099 job cuts down on your travel time to the 1099 job. I’m sorry, but I don’t see how the hotels would be deductible, given the facts you presented. Travel between home and the 1099 job is deductible, but not from the 1099 job to the W2 jobs.

    You would be better off negotiating an expense reimbursement for the W2 job, even if you had to give up an equal amount of W2 pay in exchange.

    Johanna Fox Turner, CPA, CFP, Fox Wealth Mgmt & Fox CPAs ~ 270-247-0555
    https://fox-cpas.com/for-doctors-only/

    #220663 Reply
    Liked by StateOfMyHead
    Avatar StateOfMyHead 
    Participant
    Status: Advanced Practice Provider
    Posts: 82
    Joined: 01/01/2019

    I’m not sure how going to stay in a hotel that is twice as far away from your home as the 1099 job cuts down on your travel time to the 1099 job. I’m sorry, but I don’t see how the hotels would be deductible, given the facts you presented. Travel between home and the 1099 job is deductible, but not from the 1099 job to the W2 jobs.

    You would be better off negotiating an expense reimbursement for the W2 job, even if you had to give up an equal amount of W2 pay in exchange.

    Click to expand…

    Going from point A (farthest W-4) to B (1099 which is about 1/2 way)  to C (residence) rather than A to C back to B results in 4 hours sleep vs 2 hours sleep plus a long drive at midnight after working 16 hours. So if I can’t write it off I can’t write it off which sucks but it doesn’t make sense on a few levels to return home when I’m working the next morning at my 1099 job.

    #220714 Reply
    jfoxcpacfp jfoxcpacfp 
    Moderator
    Status: Financial Advisor, Accountant, Small Business Owner
    Posts: 7523
    Joined: 01/09/2016
    Going from point A (farthest W-4) to B (1099 which is about 1/2 way)  to C (residence) rather than A to C back to B results in 4 hours sleep vs 2 hours sleep plus a long drive at midnight after working 16 hours. So if I can’t write it off I can’t write it off which sucks but it doesn’t make sense on a few levels to return home when I’m working the next morning at my 1099 job.

    Click to expand…

    I see. Unfortunately, in the eyes of the IRS, at issue is that you need to stay in a hotel to work at the W2 job. Whether you drive home after the W2 job or straight to the IC job is irrelevant. But, that’s jmo and maybe you can find a CPA who will see things your way – you’ll find there is lot of leeway in opinions you’ll get depending on which tax preparer you talk to, if you know what I mean. I’m sorry I can’t give you the answer you had hoped for. I agree, losing the employee business expense deduction has sucked for several clients.

    Johanna Fox Turner, CPA, CFP, Fox Wealth Mgmt & Fox CPAs ~ 270-247-0555
    https://fox-cpas.com/for-doctors-only/

    #220715 Reply
    Liked by StateOfMyHead
    Avatar StateOfMyHead 
    Participant
    Status: Advanced Practice Provider
    Posts: 82
    Joined: 01/01/2019

    Yup, grasping at straws. I’m considering asking about a change to 1099 with a small bump in pay to account for the full share of FICA which would be beneficial for both write offs and additional tax deferred savings. I’m not interested in a lower salary in exchange for expenses as my rate is how I springboard into more money with each subsequent position.  I like negotiations to be cut and dry as opposed to haggling over bits and pieces like CME reimbursement.

    Thanks Johanna!

    #220858 Reply
    jfoxcpacfp jfoxcpacfp 
    Moderator
    Status: Financial Advisor, Accountant, Small Business Owner
    Posts: 7523
    Joined: 01/09/2016

    Yup, grasping at straws. I’m considering asking about a change to 1099 with a small bump in pay to account for the full share of FICA which would be beneficial for both write offs and additional tax deferred savings. I’m not interested in a lower salary in exchange for expenses as my rate is how I springboard into more money with each subsequent position.  I like negotiations to be cut and dry as opposed to haggling over bits and pieces like CME reimbursement.

    Thanks Johanna!

    Click to expand…

    Makes sense about the lower salary – a change to 1099 might actually make a lot of sense, plus would allow more space to contribute to solo-k. Or you could just try to negotiate an accountable plan into the agreement. Maybe they’ll go 50:50 on the mileage rate reimbursement.

    Johanna Fox Turner, CPA, CFP, Fox Wealth Mgmt & Fox CPAs ~ 270-247-0555
    https://fox-cpas.com/for-doctors-only/

    #220919 Reply
    Liked by StateOfMyHead

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