Scooby Doo work for the IRS. He is an Auditor. On January 4, 2017 (all the activ

Question

Scooby Doo work for the IRS. He is an Auditor. On January 4, 2017 (all the activity below is the on the same day) he uses his car as follows: He drives from his personal residence to his office at the IRS = 8 miles

Next, he drives from the IRS office to ABC Corp to work on an audit. This was = 10 miles

Next, he drives from ABC Corp to XYZ Corp to work on another audit. Mileage was = 6 miles

Finally, he travels from XYZ Corp. to his personal residence = 7 miles

What amount of Scooby Doo’s mileage for this day is qualified business mileage?

Explanation / Answer

Qualified business mileage is the distance travelled while doing official work. It is to be noted here that commuting expenses for going from residence to work and vice versa are not deductible.

Thus 8miles from residence to office at IRS = not allowable

IRS Office to ABC Corp =10 Miles = To be included

ABC Corp to XYZ Corp =6miles = to be included

XYZ Corp to residence = 7miles = not allowable

Thus total qualified business mileage for the day =10+6 = 16 Miles

Proper log should be maintained by Scooby Doo to claim this expense

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