Tax deductions

[olympus593]

Hmmm, I'm almost 100% certain that would not fly with an auditor. I guess your CPA is the one signing the return so you don't have to worry about it. The question is if the questionable deductions make you enough extra on your return to pay for the CPA.

I've found that if I leave the gray areas off the return and do it myself, I still come out ahead of paying a CPA a couple hundred bucks to do it for me.

I got audited by my state a couple years ago and all that my CPA wrote off around 40K was all legal, I even got a check for an extra $31 from the state when it was all said and done.

 

[Truckdriver]

I got audited by my state a couple years ago and all that my CPA wrote off around 40K was all legal, I even got a check for an extra $31 from the state when it was all said and done.

I'm not sure what the state laws are since they are different for each state, but for a federal return I would think an auditor would kick out the haircuts and grooming.

 

[NCFlyer]

Crashpads & commuting expenses = no deduction, with only a few exceptions.

The IRS doesn't care where you live, your taxes are based on your "tax home". Without looking it up, it is the principle place of employment. Has nothing to do with residence.

 

[sstearns2]

Hmmm, I'm almost 100% certain that would not fly with an auditor. I guess your CPA is the one signing the return so you don't have to worry about it. The question is if the questionable deductions make you enough extra on your return to pay for the CPA.

I've found that if I leave the gray areas off the return and do it myself, I still come out ahead of paying a CPA a couple hundred bucks to do it for me.

My girlfriend is going thru an audit right now for 2006. She had a CPA do her taxes that year and I can tell you for sure that your taxes are your problem and not the CPAs. The CPA is not going to deal with the IRS for you for free if you get audited.

Scott

 

[Truckdriver]

My girlfriend is going thru an audit right now for 2006. She had a CPA do her taxes that year and I can tell you for sure that your taxes are your problem and not the CPAs. The CPA is not going to deal with the IRS for you for free if you get audited.

Scott

I know that is usually the case so that is another reason why I do my own. That way, I know what was done instead of paying the CPA to tell me what he did. Alot of CPA's are writing off stuff that is questionable so they can get you a bigger return. Then you will tell your buddy about the great return you got and they will get more business.

If your just a pilot with no side business, it is much easier to figure out how to do your own taxes. It's not rocket science even though a CPA will make you think it is.

 

[Hawker800]

Investment loses. Can these be written off?

 

[Truckdriver]

Investment loses. Can these be written off?

I do know you can write off loses from stock investments outside of your 401K or IRA. You have to realize the loss which means you must sell it at a loss then write off the loss in the year you took it. You can't writeoff a loss on paper. I think you can write off losses on almost any type of investment such as land or rental property, but I have no idea how much or how you do it.

 

[Amish RakeFight]

Investment loses. Can these be written off?

You can write off $3K per year until you have exhausted your losses (i.e., 18K loss = 6 years of write-offs). Me... I'll be able to take deductions for the next several years.

 

[NCFlyer]

Again without looking it up, in the past you could use your losses to offset any gains. Losses in excess of gains were limited to $3,000. But any excess losses could be carried over from year to year.

 

[Linedriver]

The bodaega down my block ran out of watermelon flavored italian ices. Pisses me off since I've got the perfect spoon for them. Guess I'll have to wait until the Spring/Summer time. they did have a few rainbow flavor left over so it wasn't a total loss.

LGA Class pad?