It's Tax time, here is the requisite thread

[COOPERVANE]

It's getting to be tax season. I'm starting to get together my LEGALLY deductible job-related expenses to do my taxes.

Obviously any non reimbursed job expenses (uniform, parking, job search, van tips etc) are typical.

My question is.....

Any great LEGAL deductions I am missing?

Do any of you deduct your cell phone? 50% 100%?

Obviously the $13,000 TAG with the ELT built in might raise a red flag, but how about.

• Cell phone
• Health club membership (gotta keep that medical you know)
• Per Diem minus Co. reimbursement
• headsets (since co. also provides them)

For some regional pilots

• Jet Polish
• Oakleys w/hair gel resistant lenses
• Backpack
• Ipod Com-panel adapter
• porn
• hair gel

Anything unusual you have deducted?

 

[N tha jungle]

Three items come to mind:
1) north face back pack (travel pro is not cool enough)
2) ipod and conector plug to play for the entire cabin
3) sun-in for frosted tips

come on, i know i've forgetten several!

oh one more- docs with the yellow thread.

 

[Soverytired]

How about:

Reversible underwear for those day trips that turned into overnighters by surprise?


(also good for those "co-pilot trying to kill me" moments)

 

[Flyerdan]

Those were all funny responses but a serious one would also be appreciated. Do you use a tax person with specific aviation experience? I know my wife and I are going to get killed on taxes this year. I need to start getting it right for next year.

 

[Longhorn]

Well, I know one guy that can answer tax questions regarding the ipod's, hair dye/gel and backpacks....

This ex mesa pilot can.

 

[dbchandler1]

deduct miles driving to and from the airport?

 

[atpcliff]

Hi!

U can only deduct travel/crashpad-type expenses if you don't have a base.

If your base is MSP-you can't deduct anything related to MSP.

If your base is PHX, but you're temporarily sent to PHL for a couple of months, you can deduct ALL related travel expenses to PHL.

cliff
TPA

 

[instructordude]

Condoms,

Seriously I deducted it last year.

 

[DoinTime]

When it comes down to it you can deduct anything you want. Now when it comes to legal deductions there is no gold standard especially in the grey areas. The legitimacy of your deductions will have to pass the smell test of your particular auditor and you'd better be able to provide some pretty good justifications if you did your own taxes.

Obviously any non reimbursed job expenses (uniform, parking, job search, van tips etc) are typical.

Uniform - The litmus test here is that only pieces not generally accepted as "public" apparel are deductible. Blazer, shirts, and epaulets are a yes. Slacks and overcoat are a maybe depending on the style of your particular airline but underwear, undershirts, socks and shoes are a no.

Parking - No

Job Search - Yes

Van Tips - No (with exception). If you are already taking the deduction for ME&I the "I" part is incidentals and that includes tips. If you do not take the ME&I deduction you can deduct tips.

My question is.....

Any great LEGAL deductions I am missing?

Do any of you deduct your cell phone? 50% 100%?

$13,000 TAG with the ELT built in - No

Cell phone - Only the portion of use that the company requires of you. If you are a line holder thats probably zero. Using your personal phone to call dispatch and scheduling while at work when the company provides a phone does not count. If you are required to maintain a mobile phone you can deduct whatever percentage of that phones use that is for company business.

Health club membership (gotta keep that medical you know) - No, but the cost of the medical is deductible.

Per Diem minus Co. reimbursement - If the proper tax rules are applied, this is legit. You will not get the full difference between allowable per diem and company paid per diem. (See above remark about ME&I)

headsets (since co. also provides them) - No

deduct miles driving to and from the airport? - No


[quoteIf your base is MSP-you can't deduct anything related to MSP.

If your base is PHX, but you're temporarily sent to PHL for a couple of months, you can deduct ALL related travel expenses to PHL.[/quote]

This is spot on correct. The only commuting/crash pad expenses that are deductible are if you are temporarily stationed somewhere other than your permanent station. There is some argument over whether the base change has to be involuntary or not but that is undecided.

 

[Jmoney]

Yep....

Condoms,

Seriously I deducted it last year.

Well uniform items are definitely deductible, and you certainly could use a little something to cover your head. In your case, that protuberance between your shoulders would certainly be a most appropriate location for a ribbed version.

-You a truly an idiot, Instructorfool!

-BTW-what are you doing on this board again, since you claim you never come here, tooldrawer?

 

[John Pennekamp]

If you work for ASA, pay the $50 for the FLiCA expense report. It increased my and my wife's refund by about $1100 last year between the two of us just by itemizing perdiem and adding in the CONUS.

 

[thesource]

Tell me again about the shoes and socks. A new pair of black shoes every couple of years and 3 or 4 pairs of black socks each year are not something I would buy but for this job. Are you sure I can't deduct it. And as a side note, I use a guy that was in the Avit. tax business and he has not had a problem with these over the years and I have asked more than once. Also, years ago I bought a Breitling and we deducted 25%. He said I could do more but I thought 25% was fair. Anyone Know any different?

 

[DoinTime]

Tell me again about the shoes and socks. A new pair of black shoes every couple of years and 3 or 4 pairs of black socks each year are not something I would buy but for this job. Are you sure I can't deduct it.

Like I said, you can deduct anything you want. When it comes to shoes and socks (slacks and overcoats too) you're going to have to justify why you can't wear these items in public. Tax professionals make a living off of getting you a bigger return. If you are audited and found to be wrong you still have to pay the IRS, not your tax preparer. Considering that the annual cost of keeping up the condition of your socks and shoes is about $50-$60 (or $5-$10 in your pocket after return) its not worth the risk, IMO.

Here is what the IRS says about uniform deductions.

Work Clothes and Uniforms:
You can deduct the cost and upkeep of work clothes if the following two requirements are met.

1. You must wear them as a condition of your employment.

2. The clothes are not suitable for everyday wear.

It is not enough that you wear distinctive clothing. The clothing must be specifically required by your employer. Nor is it enough that you do not, in fact,
wear your work clothes away from work. The clothing must not be suitable for taking the place of your regular clothing. Examples of workers who may be able to deduct the cost and upkeep of work clothes are: delivery workers, firefighters, health care workers, law enforcement officers, letter
carriers, professional athletes, and transportation workers (air, rail, bus, etc.).

 

[trainer8]

It's getting to be tax season. I'm starting to get together my LEGALLY deductible job-related expenses to do my taxes.

Obviously any non reimbursed job expenses (uniform, parking, job search, van tips etc) are typical.

My question is.....

Any great LEGAL deductions I am missing?

Do any of you deduct your cell phone? 50% 100%?

Obviously the $13,000 TAG with the ELT built in might raise a red flag, but how about.

• Cell phone
• Health club membership (gotta keep that medical you know)
• Per Diem minus Co. reimbursement
• headsets (since co. also provides them)

For some regional pilots

• Jet Polish
• Oakleys w/hair gel resistant lenses
• Backpack
• Ipod Com-panel adapter
• porn
• hair gel

Anything unusual you have deducted?

There are plenty of pilot tax gurus on this board; they'll hit this thread soon.

If your new to airline flying, if you don't itemize your taxes or don't have enough deductions to itemize, the personal standard deduction is all you have for yourself/family.

If you itemize, the IRS allows you to deduct CONUS and OCONUS Meals and Incedental Expenses, or M&IEs. They give you a Transportation Worker standard which, I believe for 2007, is $52 per day. Or, you can itemize each RON city. If you are in a high rate city like a LGA RON, the specific city rate is typically much higher than the standard rate. If you RON in ELM, it will be much less. If your company pays you a per diem rate, you can take the difference between the per diem and the IRS city/standard rate. If the per diem is greater than the IRS rate, you will have to pay tax on the excess.

The pubs and forms are on the IRS web site. It's worth the time/work/research if you are traveling alot, especially OCONUS. Last year my deduction was $800 just for M&IEs.

ANYTHING work related item you use/buy soley for your flying job is deductable. Headset, shoes, clothing (uniform), digital logbook/PDA. BUT, transportation to work is not. Crashpad is not.

If YOU pay for parking and are not reimbursed, you may deduct the parking fees.

Cell phone--if you are required by you company to be contactable and they don't compensate you for your cell phone usage, you must pro-rate the amount of cell phone usage you use personally and what is used for the company.

Same goes for your computer and ISP. The percentage must be "reasonable" to the IRS. So if you claim it all, it's gotta be a computer soley for company use.

That should get you started. Watch this site for more tax guys to post. It'll be here.

T8

 

[atpcliff]

Hi!

I believe the watch is in the FARs. At USA Jet, or Ops Specs also requires it, so you can deduct 100%. I think it's pretty standard to deduct 100% of your watch.

Interesting note:
Trans States required a Black, "Conservative" watch.
Emirates requires a Silver watch with a Silver metal band.

cliff
YIP

 

[Big Foot]

Has anybody used EZPERDIEM.com to figure the CONUS for taxes. If so was it worth it??

 

[DoinTime]

Hi!I believe the watch is in the FARs. At USA Jet, or Ops Specs also requires it, so you can deduct 100%. I think it's pretty standard to deduct 100% of your watch.

A watch is a professional requirement regardless if it is a requirement for the company. Reasonable deductions are legit but if you get much north of $200 you're asking for trouble. The $13,000 TAG watch deduction will get you some pretty heavy fines from the IRS.

 

[ToiletDuck]

Uniforms and haircuts since those are required by the job.

 

[Wiggums]

If YOU pay for parking and are not reimbursed, you may deduct the parking fees.

Vehicle expenses related to commuting to work such as tolls, parking, and fuel and not deductible. You are only to permitted to deduct the above expenses if you use your car for a business purposes. I know that many people here a deducting parking but in an audit you will probably pay it.

 

[prtyprtyprncss]

Well uniform items are definitely deductible, and you certainly could use a little something to cover your head. In your case, that protuberance between your shoulders would certainly be a most appropriate location for a ribbed version.

-You a truly an idiot, Instructorfool!

-BTW-what are you doing on this board again, since you claim you never come here, tooldrawer?

Anyway, $3.98 isn't worth the risk of getting audited!

 

[Thedude]

Has anybody used EZPERDIEM.com to figure the CONUS for taxes. If so was it worth it??

If you do a lot of Intl flying it is worth it. If all you do is domestic probably not.
I had a $9000 difference between what I was paid and what the gov says the per diem should be.

 

[trainer8]

Vehicle expenses related to commuting to work such as tolls, parking, and fuel and not deductible. You are only to permitted to deduct the above expenses if you use your car for a business purposes. I know that many people here a deducting parking but in an audit you will probably pay it.

See, I told you the tax gurus would show up!

Thanks for the correction.

T8

 

[Rez O. Lewshun]

I deduct anything that I spend money on to help me make money that requires me to pay taxes...

How 'bout them apples?

 

[trainer8]

I deduct anything that I spend money on to help me make money that requires me to pay taxes...

How 'bout them apples?

If they ain't rotten to the IRS, them thar is good apples.

T8

 

[LearLove]

FWIW,

Over the past 8 years I've (my tax guy says so) deducted the GA flying I've done. My tax guy says as long as i have a SEl/Comm and or CFI (current) then it is OK.

It is usually on the neighborhood of $1500-1800 per year that i spend putzing around in either a c150 or other club aircraft.

being single with no house or kids I really don't have anything else to write off other than the standard airline stuff. I just do what my retired airline/tax guy tells me. i used the same guy ever sice starting 121 8 years ago.


off the top of my head my stuff this year will be;

GA flying - 1800
uniform - 350
glasses - 350
watch - 250
cell(on reserve) 39(basic) times 12=468
internet 29 (basic) times 12= 348
cable 42 (basic) times 12 = 504
aopa = 39
flying manuals/periodicals =200
teamster dues = 950
cloths donation 600/3=200
2006 tax prep = 195

thats about it

total = 5654.

every year for the past 8 years it always come out about the same as above plus or minus a few 100.

My guy will get me about 1500 back (state/fed) and I'll pay him about 200 and owe the county here in PA around 300. 1500 - 200 - 300 = 1000 to me. Wahoo strip bar on my next overnight here i come.

 

[trainer8]

Hey, LearLove, you on reserve today...or on a trip

 

[LearLove]

off - about to go out for a mtb ride now - windy and cold - this should be fun.

i would take the t-34 up but i don't feel like getting the snot kicked out of me - and pay $$ for it too.

 

[Rez O. Lewshun]

In addition... the ALPA national guys will be able to duduct all mustache grooming cost!!

 

[prtyprtyprncss]

I thought you could only deduct the portion of internet and cell phone fees that you actually used for work...seems the IRS would think 100% of the time for cell and net would be over the top...and cable??? My tax lady's really a bit too strict tho...

 

[Rez O. Lewshun]

I thought you could only deduct the portion of internet and cell phone fees that you actually used for work...seems the IRS would think 100% of the time for cell and net would be over the top...and cable??? My tax lady's really a bit too strict tho...

I guess you could pro rate the internet, then again can you get your internet subscription pro rated....

IOW.... it cost me $50 bucks to get basic hi-speed.. that is the lowest cost to get the service...


deduct it...