Tax deductions

[Penguin46]

If your hourly wage is paltry and you don't fly much, an airline pilot job may count as a second job providing you earn more in another career field. Research second jobs and see if you qualify as there are much more writeoffs. Some people are reservists, painters, flight info consultants, etc..If you have other things on the side, a good tax. accountant will be a good investment. Good luck

 

[NCFlyer]

You can search www.irs.gov for more information but it may take awhile to find what you are looking for. I recommend getting the book "J.K. Lassers Tax Guide". It comes out every year. The book tries to explain the tax laws in common language. Giving examples of what is allowed and what isn't allowed. Then it gives details about tax cases that went to court with how and why the court decided the way it did. And don't forget, it is deductible on next year's taxes.

As a general rule, anything that is required by your employer as a condition for employment is deductible. But not everything. Some companies require pilots to have a watch, yet the IRS has made it clear that watches are "jewelry" and therefore not deductible.

If not required the IRS will look at: Is it a reasonable and usual expense for the job? Think flight bag or suitcase. Not required but certainly reasonable.

Third: Items that are used in both job related and personal uses will need to be pro rated and only that portion of job related use is allowed to be deducted. Think phone, computer, internet expenses.

Also, remember that just because someone tells you that they have deducted something in the past doesn't make it legal.

I could tell you that I drove 100 mph on the way home last night and didn't get in trouble, so it must be okay, right?

 

[ACL65PILOT]

Also remember that items such as headsets, flight kits et al need to be deducted over a period of time. That period is the time in years and months that they were used.

 

[regionalcap]

Also remember that items such as headsets, flight kits et al need to be deducted over a period of time. That period is the time in years and months that they were used.

.........

 

[AKAAB]

http://www.ustaxcourt.gov/UstcInOp/asp/HistoricOptions.asp

Exerpt from one hit:

Petitioner claimed a deduction in 2004 for the cost of
maintaining a haircut for his State job. Grooming remains an inherently personal expense and is not deductible, regardless of whether an employer requires a particularly neat appearance.
Hynes v. Commissioner, supra at 1291-1292. Petitioner may not deduct the cost of his haircuts. Respondent’s determination is sustained.

 

[Truckdriver]

Also, remember that just because someone tells you that they have deducted something in the past doesn't make it legal.

Exactly right. You can deduct anything you want and you might get away with it until you get audited. When you get audited, if you get caught deducting shady stuff, they will go back the last three years and nail you every year. If it is questionable, I leave it off. Haircuts might get me $50 bucks more on my return, but would cost hundreds if I get audited.

 

[Carl_Spackler]

Also remember that items such as headsets, flight kits et al need to be deducted over a period of time. That period is the time in years and months that they were used.

I've never heard of anyone depreciating items like this. Is there some where in an IRS pub that explains this?

 

[Truckdriver]

Third: Items that are used in both job related and personal uses will need to be pro rated and only that portion of job related use is allowed to be deducted. Think phone, computer, internet expenses.

An IRS guy advised me that I should track how many minutes I use my phone for work over a one month period and document that. Then I can deduct that percentage for the entire year. Same for Internet. I use 50% for cell phone and internet although I know guys who do more than that. Also, remember if you use a family plan you can only a percentage of your portion of the bill, you can't deduct the other family members portion.

 

[Truckdriver]

Just let someone like www.pilot-tax.com do the work.

If your not comfortable doing your taxes and would not be able to back up what you itemize, then I would absolutely pay someone to do your taxes. If you want to save a couple hundred bucks and can back up what you itemize, taxes are a piece of cake.

 

[generaltso]

How about the M&IE deduction while in training? I did Delta training in 08 and we were not given per diem while in training. So we can count the days in ATL as overnights essentially, I believe... anyone with info on this?

 

[Ronnie75]

Also, is a crashpad really not deductible? I kind of was counting on it. It's not like I'm paying for one and hanging out in it for fun.

 

[olympus593]

I am thinking of deducting the following items on my taxes... any thoughts?

1) Crash pad (I seem to recall this isn't deductible)

2) Haircuts (FOM says gotta have a haircut)

3) Razor blades (these puppies are expensive... again, FOM says clean shaven)

Any thoughts? Thanks

Crash pad: no

Haircuts/ razor blades: My CPA say $24/Month for grooming.

 

[Truckdriver]

How about the M&IE deduction while in training? I did Delta training in 08 and we were not given per diem while in training. So we can count the days in ATL as overnights essentially, I believe... anyone with info on this?

As long as you don't live in ATL, you can deduct the M&IE rate for each day you spend there for training. You can do this even if they pay you perdiem, you just get the difference which isn't much for ATL. Since you didn't get perdiem for training, you get the whole amount which will be a good addition to your return.

 

[Truckdriver]

Also, is a crashpad really not deductible? I kind of was counting on it. It's not like I'm paying for one and hanging out in it for fun.

Crashpads are a no unless you are TDY'd to a domicile and your company doesn't put you up in a hotel. I think MESA did this for awhile. Otherwise, you are out of luck. There are some cases where if you reasonably expect that it will be less than a year it may be deductible. An example would be that you bid a Captain position in NYC reasonably expecting to get awarded a Captain position in ATL before one year. In that case you might be able to deduct the crashpad. If you expect the stay to be longer than a year, then it is not deductable. The tough part is convincing an IRS auditor that the stay was expected to be less than a year.

 

[Truckdriver]

Crash pad: no

Haircuts/ razor blades: My CPA say $24/Month for grooming.

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.