A Squared
Well-known member
- Joined
- Nov 26, 2001
- Posts
- 3,006
Jimntexas,
"If the pilot is paid on a W-2 then we both agree that there is no way to deduct the watch. You'd have to be able to show that your employer required you have this watch."
This differs from my understanding of deductions. I agree that a $4000 watch may be streching the definition a bit, but a work related expense does not have to be required by your employer in order for you to deduct it.
I don't have the Tax Code in fromt of me, but I do have a 2003 tax instruction booklet.
In the instructions for Schedule A Line 20 it says:
"Enter the ordinary and necessary job expenses for which you were not reimbursed. (Amounts your employer included in box 1 of your Form W-2 are not considered reimbursements)
An ordinary expense is one that is common and accepted in your field of trade, business, or profession. A necessary expense is one that is helpful and appropriate for your business. An expense does not have to be required to be considered necessary "
Now, if you have case law that disallows watches for Doctors, that might also apply to pilots. That doesn't mean, however, that the only expenses you may deduct as an employee are ones specifically required by your employer.
"If the pilot is paid on a W-2 then we both agree that there is no way to deduct the watch. You'd have to be able to show that your employer required you have this watch."
This differs from my understanding of deductions. I agree that a $4000 watch may be streching the definition a bit, but a work related expense does not have to be required by your employer in order for you to deduct it.
I don't have the Tax Code in fromt of me, but I do have a 2003 tax instruction booklet.
In the instructions for Schedule A Line 20 it says:
"Enter the ordinary and necessary job expenses for which you were not reimbursed. (Amounts your employer included in box 1 of your Form W-2 are not considered reimbursements)
An ordinary expense is one that is common and accepted in your field of trade, business, or profession. A necessary expense is one that is helpful and appropriate for your business. An expense does not have to be required to be considered necessary "
Now, if you have case law that disallows watches for Doctors, that might also apply to pilots. That doesn't mean, however, that the only expenses you may deduct as an employee are ones specifically required by your employer.