It's Tax time, here is the requisite thread

[mesaba13]

I thought you could deduct the cell phone because of tax language that states that it doesn't have to be a necessity as long as it is useful and common practice in your job. (calling dispatch, mx, etc)

 

[DoinTime]

I thought you could deduct the cell phone because of tax language that states that it doesn't have to be a necessity as long as it is useful and common practice in your job. (calling dispatch, mx, etc)

That is language that is in regard to trade tools. For example, a toolbox is something that is not required for a mechanic to complete a repair (unlike the tools contained within) however it is useful and customary to have one. A toolbox is deductible or depreciable. For pilots the deduction of sunglasses is a similar deal. Sunglasses are not required to fly an airplane but they are useful and customary to the profession.

Information services are not classified the same as trade tools though. Necessity is weighed if the services are found to be not already provided by the company and pro-rations are applied if the device is also utilized for personal use.

 

[JimNtexas]

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.

I wonder on what basis you are claiming this deduction. Certainly just having a pilots license does not entitle one to deduct 'GA flying'.

 

[Rez O. Lewshun]

Information services are not classified the same as trade tools though. Necessity is weighed if the services are found to be not already provided by the company and pro-rations are applied if the device is also utilized for personal use.

Cell phones are justified, IMHO, because it allows me to talk to sched.. to pick up flying, to make more money, to pay more taxes....

Therefore I deduct... now I have multiple people on my cell account so I only deduct my portion...

If one is making less than 100K I don't think the IRS is going to scrutinize pilots with a house note and lots of travel... if a pilot is making less than 50K they are probably glad he paid taxes throughout the year... and will leave it at that...

Of course, it's like excercising PIC authority... can you withstand the scrutiny of the Fuzz?

 

[www.]

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.

But if your company is paperless, you must have access to the internet (sch, company email, required reading etc) so I deduct the data part of my cell phone.

 

[wmuflyguy]

Condoms,

Seriously I deducted it last year.

And the same box is still laying un-opened in the bottom of your rollerboard.

 

[nwcrjca]

The IRS has ruled that you CANNOT deduct haircuts as expenses. They are normal life events that would occur if you were not working at the company.

This has been in effect since 2006

 

[LearLove]

I wonder on what basis you are claiming this deduction. Certainly just having a pilots license does not entitle one to deduct 'GA flying'.

I guess its SEL currency or maybe job interview/sim practice- gotta keep cfi skill on par, could get a student at any moment that would provide revenue.

I don't know - studied engineering in college - don't no nothing about accounting - thats why i pay this guy 200.

 

[Airboss]

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...

You may think she's strict now, but its worth it in the long run when you don't get audited.
The IRS waits for over 3 years before auditing you. You don't get a refund for any returns beyond 3 years old, if you edit them.

As stated before you can deduct the percentage of your phone bill used for work. Same with the net and cable.

 

[JimNtexas]

I guess its SEL currency or maybe job interview/sim practice- gotta keep cfi skill on par, could get a student at any moment that would provide revenue.

I don't know - studied engineering in college - don't no nothing about accounting - thats why i pay this guy 200.

I hope he is an EA or CPA, so he can represent you when you are audited.

 

[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.