Income Tax Question

[Riddy]

Does anyone know how to deduct costs incurred during training for a new airline job. I didn't move but drove 700 miles to and from the training center. As I understand it, I can deduct .345 cents per mile but I don't know where to enter it on the 1040. Do I have to list my car as a business expense or just use a misc. deduction? Any tax experts out there???

 

[jetdriven]

you can deduct the one way moving expenses for taking a new job at the mileage rate plus 1/2 meals and all expenses. I dont think gasoline is allowed because you are gettiing the mileage deuction. the new home must be 250+ miles away. I believe it is reported with your schedule A itemized deductions, if youre like me i dont have enough to itemize though,

 

[jetdriven]

i dont know if training counts. I think you can deduct the standard rate depending on area it varies from 30-50$ per day depending on the metro area. per-diem paid to you offsets this.

 

[bobbysamd]

Tax Deductions

I do have a degree in Accounting and did my own taxes for years, including the time I was in professional aviation, but I'm no expert. Having provided that CYA, here goes.

You can deduct meals. You can take the mileage deduction, lodging and other expenses not covered by per diem. You can take these and other deductions only if you itemize.

Moving expenses are a deduction if you meet the criteria set forth by "jetdriven." I believe there is a separate tax form on which you compute your moving expenses. The computation goes on your 1040. Moving expenses include cost of the moving company or U-Haul, lodging en route to the new location, meals, fuel, etc. Of course, any company reimbursement would be an offset against these expenses.

I'd figure it out both ways. Except for a couple of years, I actually came out ahead using the standard deduction.

While I'm at it, if you're creative you can deduct a myriad of things you might not think of ordinarily as being tax-deductable. You can deduct a type rating fully. You can deduct the cost of uniforms and their maintenance. That could turn out to be a handsome deduction; doesn't a uniform go for at least $500 these days? You can deduct magazine subscriptions. You can deduct Jepps, as long as your company does not provide them to you. I'd also say, in my .02 opinion, you can deduct books on flying.

Contrary to popular belief, you cannot deduct your crash pad. The rule of primary residence applies.

Another old wive's tale is you can deduct the cost of initial training to become a pilot. Sorry. Training to prepare for a career is not tax-deductable. Compare it to going to college. You cannot deduct the cost of college.

I know there's a website devoted strictly to professional pilot tax return preparation, and I'm sure someone will post it.

Happy (!?) tax preparation.

 

[OtterFO]

www.tax4crews.com

I'm planning on using them this year.... Will provide a "Trip Report" in April...