It's Tax time, here is the requisite thread

[COOPERVANE]

The IRS DOES red flag files for a few years to see if they can justify the expense of a formal audit. Then watch out. An audit is like a bad Fed ride. You answer one thing wrong and it's "lets talk more about that"

You have gleefully been deducting everything under the sun for 5 years with no receipts, all the while thumbing your nose at all the suckers along the way without your insight. They will ask you to bend over at that point.

Saw this once when I was a bartender. The IRS randomly audited a waiter at the restaurant, and found that he was not claiming all of his tips. This was VERY common in the rest. business. They then audited ALL OF US in the next several months. I don't really want to go through that again.



From IRS pub sec 529:
Wristwatches

You cannot deduct the cost of a wristwatch, even if there is a job requirement that you know the correct time to properly perform your duties.
OOPS!!

 

[marycon]

www.irs.gov

Publication 502 Medical and Dental expenses
Publication 521 Moving Expenses
Publication 529 Misc Deductions (cell phones, computers, dry cleaning, mileage, etc)
Publication 526 Charitable Contributions
Publication 1542 Per Diem Conus

Also see www.gsa.gov for more Per Diem info

 

[regionalcap]

www.crewtaxes.com


Relax and let them do the deductions.

 

[NCFlyer]

We go through this every year.

Remember it's all deductible until the audit!

Claiming a deduction is like driving 90 mph, just because you did it and didn't get caught doesn't make it legal.

My own personal opinion is take all that are legal, the iffy ones take only the ones you are willing to defend in tax court & hope that you never have to. I find that I sleep much better at night that way.

My suggestion to anyone is to go to your local bookstore and get the J.K. Lasser tax guide (it's deductible). Sit down and read the section on business expenses several times. The tax guide will explain the tax law in nearly plain language and then gives several examples of legal cases that were won and lost by tax payers.

 

[atpcliff]

Hi!

re:

From IRS pub sec 529:
Wristwatches

You cannot deduct the cost of a wristwatch, even if there is a job requirement that you know the correct time to properly perform your duties.

My airline's Ops Specs REQUIRE me to WEAR a watch when I fly. This requirement seems more restrictive than the above IRS language. So, I wonder if deducting a watch at my company would be legal-probably never know unless audited.

cliff
GRB
PS-My dad was audited (he had a CPA), and in the end the IRS owed him more money back. Then they audited him AGAIN the next year, and once again, the IRS owed him more money. They never audited him after that. They also told him he was about the most organized "auditee" they ever had.

 

[NCFlyer]

In the past wristwatches have been denied as a business expense deduction by the IRS. Without looking up the case, I believe that the tax court ruled that watches were personal articles of jewelry even if required to be worn by the employer.

Can you deduct it? Sure, until you get audited!