Mileage to Minister

2008-10-30 by

Today TaxMama hears from Larry in North Carolina, with this dilemma. “I have a part-time business servicing computers. I have a separate business checking account, file Schedule C, etc. I deduct business miles on a mileage basis. On occasion I do some computer work for my minister back home. It is a 180 mile round-trip. I do not charge him for my services. My question is, can I deduct the mileage rate for my travel to and from his location?”

Hey Larry,

It sounds as if you are a fine fellow. You’re doing everything right with respect to your business ethics. This is a good question.

Since your minister isn’t a paying client, and he’s not really in your usual service area – is the mileage deductible?

To make this a business deduction, there has to be some business purpose. Perhaps he sends you referrals? No doubt he has many nice things to say about you! Perhaps you use his system to learn about something specific that you use on other clients’ systems? Find a good business reason – then take the mileage.

If you can’t find a business reason, perhaps you can take the mileage as a charitable contribution on Schedule A? Unfortunately, charitable mileage is much lower than business mileage – it’s about 14 cents a mile (It can only be changed by an Act of Congress – literally).

See the latest mileage rates here: http://www.irs.gov/taxpros/article/0,,id=156624,00.html

This is the best I can do. I hope this helps.

And remember, you can find answers to all kinds of questions about mileage and other tax issues, free. Where? Where else? At TaxMama.com

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# | Posted in Tax Quips | Comments » (4)



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  1. Bonney Irvin Says:
    October 31st, 2008 at 07:03 am

    I have clients that are so good hearted and like me. I can not see to charge my minister for something I give from the heart. But I believe it can be used as a deduction on Sch. C as marketing or advertising to help lower the self employment tax. However the trip must be logged somehow. Even with a zero invoice and charged to the correct acct. The minister I know will converse with others the good deed done. And the best advertising is word of mouth. Who better than clergy.

  2. David Friedson Says:
    October 31st, 2008 at 08:06 am

    A better strategy: agree with the minister that you will charge your regular rate and donate the exact same amount to his church, therefore you get the benefit of the deduction and the mileage, he has effectively no cost.

  3. Thomas Avery Blair, EA Says:
    October 31st, 2008 at 08:09 am

    I concur, but wish to add my two cents' worth: The trip might also qualify for training or research deductions, assuming the ministers' computer was acting up and the tech learned something new, had to correspond with a marketer of software the tech was unfamiliar with, etc. Of course, the deduction does the most good on Schedule C if it "fits" into a legitimate business expense category; conservatively, though, it really sounds more like charitable mileage unless a business-involved effort was actually made. I might also ask the tech if he purchased any new equipment, software, etc., or if he also serviced anyone else besides the minister during his trip for compensation? Just food for thought. Respectfully submitted, Thomas Avery Blair, EA

  4. Tina M. G. Stark EA Says:
    October 31st, 2008 at 12:20 pm

    I may have read this wrong. I see it says "On occasion I do some computer work for my minister back home." A minister is usually not a 501.3©. A minister is a person. To be a charitable contribution on Schedule A, the donation must be to a charity, and one must have a written receipt. Maybe I just CMA to much but I don't see how you can substantiate this in audit. This could lead a taxpayer to believe that, If they drove their neighbor to the doctor because her car was in the shop they get to claim that mileage a charitible. I could make the argument that this was marketing or advertising or goodwill and make the claim as business miles. I would not take this as charity. Change from minister to "Church", and I might consider charity. BUT he said "back home", which tells me I need to ask "What the intent of the trip was for, business or pleasure?" "back home" says family to me. A pull back there. We are only talking 90 miles one way. A day trip. Just my two cents. Tina

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