Members of the Maryland Association of Certified Public...


March 22, 1995

Members of the Maryland Association of Certified Public Accountants are answering readers' tax questions through April 15.

Q: I work from home and I travel to and from my clients. Can I report all my mileage from the start of the day when I leave my home until I return? Or do I count the mileage beginning from my first appointment through my last appointment, with travel from my home to my first appointment and from my last appointment back home considered commuting? I do not meet any clients in my home.

A: Since your home is not considered your principal place of business under IRS definition (namely where a majority of your business is conducted), the mileage from your residence to your first appointment and from your last client call to your home is considered commuting. So your deductible business mileage would begin when you leave your first client and end with the arrival at your last client call of the day.

Q: At the end of 1993, I bought a home purely as an investment. It was never rented out, but I rehabbed it significantly, putting about $30,000 into it. I sold the house within a year and made a profit of somewhere around $6,000. Do I need to file a Form 2119, the sale of a personal residence, or do I fill out Schedule D and record the sale as a short-term capital gain?

A: Since the house was purchased as an investment, the sale should be reported as a short-term capital gain on Schedule D; Form 2119 is used only for reporting the sale of a principal residence. If you are in the business of refurbishing homes, the gain may be business income and reported on schedule C.

The above advice is for general purposes only and is not intended as legal, accounting or tax advice. Specific situations may vary.

To submit a question, call Sundial, The Sun's telephone information service, at (410) 783-1800. In Anne Arundel County call 268-7736, in Harford 836-5028, and in Carroll 848-0338. Using a touch-tone phone, enter 6225 after the greeting. Push 1 to submit a tax question; state the question in full. Push 2 to hear a tax tip. Selected questions will be answered in the Business section. No questions will be answered by phone. Please leave your name and phone number.

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