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Q&A: The IRS Audit Is Wrong on First-and-Last-Stop Rule

· Audit,Home Office

Here’s a tax rule to know: if you have your principal office in your home, your trips from home to your first stop, and from your last stop to home, create deductible business mileage.

Here’s high proof from IRS Revenue Ruling 99-7, conclusion paragraph 3, which reads as follows:

If a taxpayer’s residence is the taxpayer’s principal place of business within the meaning of Section 280A(c)(1)(A), the taxpayer may deduct daily transportation expenses incurred in going between the residence and another work location in the same trade or business, regardless of whether the other work location is regular or temporary and regardless of the distance.

If you would like to review the rules that you would need to follow to create a principal office in your home, please do not hesitate to reach out to your team at Luster Tax Consulting to work through this with you. Please use the following link to book your complimentary strategy call with your team at Luster Tax Consulting.

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