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My situation is not common... my lifestyle... not common.

Recently the company I worked for was bought out and the two "divisions" were split into 2 companies. I assisted the 2nd division on my days off. Instead of losing that ability the owner is willing to 1099 me.

So my W2 position is in Texas. My "new" 1099 position in North Dakota. My single family residence ~130 miles from my 1099. This is also the location of a semi-automated business I run. I do not call it my home as I spend one day there per month. I only kept it because my small venture is mildly profitable. I only go there to ensure my machines are running properly. For over a year the water and gas have been off. With the exception of a mattress there is no furniture. Most mail goes to a box in TX. The intention if I ever have time is to rent all the rooms out.

The order of stops can be changed to accommodate but the typical month goes something like: work 20 consecutive days in south Texas (put up in hotel at company's expense), drive to my SFR and reset machines as necessary, sleep, drive to 1099 (put up in hotel at their expense and spend 4-6 days there, drive back to Texas to hotel first, sleep, use their vehicle for daily transport between hotel and work locations.

Does this work on any legs of the trip? Rearranged? (i.e. TX -> ND-job -> SFR)

Would I need to take my vehicle first to the work site instead of the hotel in TX when arriving? Leave from the work site instead of hotel at end?

Thank you.

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  • Do either of the two companies reimburse you for the trip? Did the one company reimburse you for the trip before they split? Sep 16 at 14:10
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    I think the biggest issue is going to be if the IRS considers the drive to and from the TX site your "commute", in which case it won't be deductible. You don't primarily work from home, and it's your choice not to live closer to the TX site.
    – chepner
    Sep 16 at 14:21
  • @chepner Is it a home? But even so if I left TX from work and went to work in ND. That would be a drive to second job which I believe is deductible from my searches. I need to dig up IRS pubs... also the reason I'm not closer is because of the cheap electric rates in ND which allows my business venture to be profitable. I consume megawatt hours per month at 7 cents kwh. Sep 16 at 22:53
  • @BenMiller-RememberMonica There is no trip reimbursement. Before or after. Sep 16 at 22:54
  • @chepner before the pandemic I was about 6 minutes from the shop, not 2 hours for 20. :( Sep 16 at 23:00
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If Texas is your tax home, trips to N.D. should be deductible against your independent contractor sources of income in N.D.:

A tax home isn’t where you live, your tax home is the area where you regularly work to produce your revenue.

The IRS says you can deduct travel expenses for business trips when you leave your tax home and you’re returning back to it. You’re incurring expenses like gas costs, mileage, lodging, and flight expenses to leave your tax home and come back to it to do work.

https://www.nuventurecpa.com/blog/tag/full+time+rv+tax+deduction

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  • "against your independent sources of income in ND" ... these seem quite intentional words. Meaning if the following holds true: actual costs < income < standard mileage... I am capped at income? I cannot operate at a loss? Sep 19 at 4:35
  • My original plan was to deduct the leg between Williston and TX. But from your words and my reading... all legs are deductible? TX -> Garage (my automated business) - deduct against business. Garage -> 1099 - distance greater than 50 miles (~130) deduct against 1099? 1099 -> TX - deduct against...? Sep 19 at 4:42
  • By 'independent sources' I just mean 'independent contractor'. Yes, all legs not in your local area in TX would seem to be deductible because that TX locality is your tax home. Your commute within that TX locality isn't deductible. Sep 19 at 9:13

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