another tax question?

[pilotmom]

Check out www.irs.gov. You can browse the pubs online without downloading. Keep in mind that if you suddenly showed a zillion dollars in 74.99 type deductions, you might not stay "under the radar" as Timebuilder recommended. But for most of us, the $75.00 rule helps. There is also a pub on recording for individuals but I think what you requested is covered in this section.

Publication 463, Travel, Entertainment, Gift, and Car Expenses, Chapter 5.

What Are Adequate Records?
You should keep the proof you need in an account book, diary, statement of expense, or similar record. You should also keep documentary evidence that, together with your record, will support each element of an expense.

Documentary evidence. You generally must have documentary evidence, such as receipts, canceled checks, or bills, to support your expenses.
Exception. Documentary evidence is not needed if any of the following conditions apply.
1. You have meals or lodging expenses while traveling away from home for which you account to your employer under an accountable plan, and you use a per diem allowance method that includes meals and/or lodging. (Accountable plans and per diem allowances are discussed in chapter 6.)
2. Your expense, other than lodging, is less than $75.
3. You have a transportation expense for which a receipt is not readily available.

 

[Draginass]

I use a commercial piece of software to calculate the difference between my received per diem and the govt rate. The software takes into account all DOT rules etc and gives you a printout for audit purposes should you need it. It's easy, accurate and cheap. I've saved many times the price of the software by using it.

www.investec-inc.com

 

[LearLove]

Moving ?

Say i'm moving in december to a new base because I've been down graded and can't afford to live here anymore. ( mom and dad here I come)

Can I deduct:

1. Uhaul to move myself from syr to mdt
2. gas
3. boxes moving stuff
4. expenses to go back and get my car (milage to drive it down to mdt)
5. my security deposite that I can't get back becuase I have to break the lease.

side note: what I sould have done was bid out of base back when the downgrade came and the company would of had to pay to pack me, move me, and unpack me. but I bid from capt syr to fo syr and stayed in the same base. they would have also had to pay car moving $$ too. I should have read the contract better, Owell just mistake number 1 billion two hundred and fifty in my life.


Thanks

 

[bobbysamd]

Moving expenses

Yes, you can deduct everything you mentioned. Don't forget about meals and lodging as well.

The moving expense deduction is calculated on a form that you attach to your 1040. I don't remember the number of the form, though.

 

[pilotmom]

Sorry but I have to disagree with part of bobbysamd's okay on deducting all.

The Pub is 521 and the form is 3903. You do NOT have to itemize to deduct moving expenses so that's good. Suggest you get the pub to make sure you don't miss anything.

You have to meet time and distance tests and there are special ways of handling expenses that you are reimbursed for and may be on your W-2. (General terms is distance is >50miles and you stay longer than 39 weeks but of course, there are lots of ins and outs to that)

In real general terms, you get your household goods paid for and you get one trip for you and family. Oh yeah, the trip should be in a direct manner, can't wander around the country on the way and expect to deduct it.

UHAUL, gas for UHAUL and boxes are Deductible Moving Expenses
Moving your household goods and personal effects (including in-transit or foreign-move storage expenses), and
Traveling (including lodging but not meals) to your new home.
You CANNOT deduct any expenses for meals.

One trip for you and the car - standard mileage rate is 12 cents per mile (2001) DON'T use the business standard mileage rate which is much higher. You can use actual but why would anyone want to keep track?

NO to the SECURITY DEPOSIT/LEASE BREAK
The following items are specifically not allowed and can not be deducted as moving expenses.
· Any part of the purchase price of your new home.
· Car tags.
· Driver's license.
· Expenses of buying or selling a home.
· Expenses of getting or breaking a lease.
· Home improvements to help sell your home.
· Loss on the sale of your home.
· Losses from disposing of memberships in clubs.
· Meal expenses.
· Mortgage penalties.
· Pre-move househunting expenses.
· Real estate taxes.
· Refitting of carpets and draperies.
· Security deposits (including any given up due to the move).
· Storage charges except those incurred in transit and for foreign moves.
· Temporary living expenses.

Hope that helps.

 

[bobbysamd]

Good response.

But, why can't he deduct the unrefundable security deposit or the meals?

 

[pilotmom]

'cuz our Congressional folks said so....they're the ones who wrote the rules. (IRS only administers them and do what they say to do). The statements above were directly from the pub.