Tax deductions

[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.

 

[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?