Can 1099 contractor deduct mileage and related expenses?
A new client is an IT consultant and takes assignments for 6+ months at a time. Typically she takes assignments out of town and is reimbursed for travel expenses. Now taxpayer has taken assignment in local metro area. Are transportation expenses deductible based upon these facts?
1. TP has one client and reports to their location daily
2. TP does not qualify for office in home, but does perform administrative functions from home (such as billing client, tracking income/expense)
3. TP home is registered address for the disregarded LLC
I believe that Rev Proc 99-7 and IRC Section 280A(c)(1)(A) apply and that because TP performs some administrative/managerial functions at home and she has no other permanent location, her home is the Principal Place of Business. As such, miles driven to/from client are deductible eventhough the miles are in the metro-area/tax-home.
What do you think? Am I right, wrong, have a reasonable leg to stand on or simply "Way off base"?