Tax Question for Regional Pilots

[XPOO]

So, atpcliff, who's that handsome man in your avatar?

And yes, atpcliff, $52 is the daily rate special for only transportation employees. you really need to learn what forms you need to fill out for this job. Start with 2106-EZ and then move on to Publication 535 Chapter 13.

 

[atpcliff]

Hi!

I found this:

Regular federal per diem rate. The regular federal per diem rate is the highest amount the federal government will pay to its employees while away from home on travel. It has two components:

1. lodging expense, and
2. meal and incidental expense (M & IE).

The rates are different for different locations. Publication 1542 lists the rates in the continental United States.

Internet access. Per diem rates are available on the Internet. You can access per diem rates at www.gsa.gov.

The above is what I do, use the exact rate for each city.

I also found this:

High-low method. This is a simplified method of computing the federal per diem rate for lodging and meal expenses for traveling within the continental United States. It eliminates the need to keep a current list of the per diem rate in effect for each city in the continental United States.

Under the high-low method, the per diem amount for travel during 2005 is $204 ($46 for M & IE) for certain high-cost locations. All other areas have a per diem amount of $129 ($36 for M & IE). The high-cost locations eligible for the $204 per diem amount under the high-low method are listed in Publication 1542.

Sorry to be a pain in the poopcha (Polish for U know what), but I can't find the justification for the $52/$58 average figures.

Any help with finding the "official documentation" on the $52 figure?

Thanks a TON!

cliff
GRB

 

[Airboss]

Here is how I figure it our (ASA based in ATL)

4 day trip Overnights HPN YYZ MLU ATL.
Per diem Rates
HPN 59
YYZ 109
MUL 39
ATL 49
75% of first and last day
(59 *0.75)= $44.25
+109 + 39 +
(49*0.75)=$36.75
Total=$229
Lets say company TAFB is 80 hrs. 80*$1.50(ASA company rate) = 120
$229-$120=$109 on ONE 4 day trip is tax deductable.
Add up the whole year's difference and multiply by 0.75 (transportation industry rate) and that is tax deductable.

 

[XPOO]

IRS FORM 463

http://www.irs.gov/pub/irs-pdf/p463.pdf

Page 6, Exact Middle, "Special Rate for Transportation Workers"

 

[atpcliff]

Hi!

B E A U TIFUL !!!!

Awesome! Thanx 4 the help!

I owe you a beer or if you don't drink alchohol, a "Snow Cap" root beer from the Titletown Brewery (a microbrewery in the old train station in GRB). It is the best root beer, in my opinion (I've tried at least 70 brands).

For a nationally available brand, I like IBC (Dallas, TX) the best. Barq's is the ONLY root beer with caffeine in it. I don't drink it since I stopped doing caffeine.

cliff
GRB

 

[XPOO]

No caffeine, but alcohol is ok? Bottle to throttle my friend!

 

[atpcliff]

Hi!

I drink some once in awhile. Other than that, I'm about the most anti-drug person in America. I don't take ANYTHING unless the doctor makes me, and that includes tobacco and caffeine.

Legalizing the drugs that are currently "illegal" would go a long way towards curing tons of social problems, including much violent crime and tons of wasted taxpayer monies going to drug interdiction in foreign lands.

The Chief of Police association in the US is FOR legalizing drugs.

"Drugs are dangerous"! Yes, Morphine is "dangerous", but it's not illegal, is it? Is Morphine more dangerous, or pot?

What is the number 1 accidental killer in the US? Drunken drivers. Is alchohol illegal?

I'm with the Libertarians on personal freedoms. Let's let people do stuff, and hold them personally accountable if things go wrong.

cliff
GRB

 

[BoilerUP]

Lets say company TAFB is 80 hrs. 80*$1.50(ASA company rate) = 120
$229-$120=$109 on ONE 4 day trip is tax deductable.
Add up the whole year's difference and multiply by 0.75 (transportation industry rate) and that is tax deductable.

Why do you multiply the whole year's difference by .75 to get your actual deduction? I thought you could deduct 100% of the difference...

 

[flyinghunter]

I've been told we can also deduct internet expenses, since I am required to keep up to date on an internet message board per company policy. I also watch the weather channel before I leave for a trip to get a better idea of weather conditions, so that's deductable too. At least from what I've heard, anybody else hear stuff like this?

 

[regionalcap]

Why do you multiply the whole year's difference by .75 to get your actual deduction? I thought you could deduct 100% of the difference...

IRS rules...can only claim 75%

 

[marycon]

75% deduction of meal expenses: IRS publication 463 page 12 left hand column under "individuals subject to "hours of service" limitations"


As far as internet and cell phone deductions, while at this moment I cannot quote verbatim and perhaps someone else could provide chapter and verse, I believe the ability to deduct these type of expenses falls under the test of; the service is neccessary for your employment and your employer does not provide this service to you. So obviously we all need a phone to be contactable but the company doesn't provide one for you so a certain percentage could be deducted as work expense. As far as internet, well most companies provide computers and internet access at work for bidding etc. and technically probably couldn't be deductible.

 

[BoilerUP]

75% deduction of meal expenses: IRS publication 463 page 12 left hand column under "individuals subject to "hours of service" limitations"

Thank you!!! I downloaded a bunch of those pubs earlier today but I must have missed that part.

 

[Puck Mugger]

ALLOWED WORK RELATED EXPENSES

Union Dues
Sunglasses
Uniforms
Haircuts (required hair length per SPs)
Belts
Dry Cleaning
Starch
Shoe Polish
Shoes
Roller Bag
Chart Protectors
Internet
Cell Phone
Alarm Clock
Batteries
Watch
Pens
Flight Bag
Highlighters
Fax Machine (faxing requests to CS)
Per Diem not reimbursed (difference between GSA alowable rates and company paid perdiem)
Indusrty Publications (Flying, AOPA, etc.)

OTHER DEDUCTIONS

Medical Premiums
Medical Co Payments
Perscriptions
Child care
Education expenses for kids (Full day kindergarten)
Last years tax preparation (turbo tax or accountant)

I could go on and on.

 

[regionalcap]

www.crewtaxes.com

For 59 bucks, they will do your employee deductions and per diem calculations. I would rather have a professional back me up on these deductions in case of getting audited.

 

[Airboss]

Just remember you can deduct ANYTHING....its just possible to get audited if you go overboard.
IRS allows percentage deductions..i.e use your cell 50% of the time for work, then you can deduct 50% of its cost. Just be able to prove all of these deductions and you will have no problems.

http://biz.yahoo.com/weekend/crazytax_1.html
look at these 10 craziest writeoffs.