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Two questions on deductions

 

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Subject Author Date
Two questions on deductions Passerby 04-15-2007
Posted by Bill Brown on April 18, 2007, 2:16 am
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> I have to do my own taxes this year, our usual tax preparer
> had a sudden family emergency.
>
> I have two questions, that somebody perhaps could help me
> with:
>
> 1) My company requires, that for every daily mileage expense
> submitted, I subtract the mileage from my house to the
> office. So, if it's 20 miles from home to the airport, and
> 25 miles to my office, I can't expense the trip from home to
> the airport. Does the same rule apply when claiming tax
> deduction for car expense ? I have made probably a few
> hundred trips to different sites and vendors from my home
> and couldn't expense them because the distance traveled was
> less than commute to office.

Local job related travel between home and a temporary work
location is deductible if you have a local permanent job
location for the same job. Employers are NOT required to
reimburse you for all your deductible expenses. As you
describe it, you have a employee expense deductible on
Schedule A as a miscellaneous deduction subject to a 2% of
adjusted gross income reduction.

> 2) I didn't even request mileage expense reimbursement for
> most of the year - our management started to enforce the
> policy that mileage should be expensed within 3 months, or
> lost. In the past years, we could get away by submitting all
> prior mileage expenses around October, when things get a bit
> less crazy at work (usually I don't even go to lunch unless
> I need to meet with somebody). Can I still claim this unused
> reimbursement in my taxes ?

In my opinion, yes.

You start on Form 2106 and carry the total of unreimbursed
expenses to Schedule A. Be aware, as noted above, your total
miscellaneous itemized deductions have to exceed 2% of AGI
before you get a tax benefit.

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Posted by DORFMONT@aol.com (Linda Dorfmo on April 18, 2007, 2:16 am
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>>> 2) I didn't even request mileage expense reimbursement for
>>> most of the year ... Can I still claim this unused
>>> reimbursement in my taxes ?

>> I'm not sure what you mean by "unused reimbursement" in
>> part 2 there. If you have legitimate business-related
>> travel expenses that were not reimbursed by your
>> employer, you can deduct them on your taxes.

> I always assumed that the non-reimbursement has to be
> because the company refuses to reimburse employees for
> the expense, NOT because you never bothered to submit
> an expense report.

And then there is my old company who required the following
to get reimbursed for car mileage: Fill out a company car
request form several days in advance, get your boss to sign
it, then get your department manager to sign it, then get
your division manager to sign it, then take it to the motor
pool at 7:00 a.m. on the required morning because all the
purchasing personnel will get all the company cars if you
don't get there early. If they did and there is no company
car, you can then apply for mileage reimbursement. Needless
to say, if the requirement to drive to another building,
plant site or outside location came up on short notice or
the departure time was not fixed well in advance, you took
your own car and didn't bother with the paperwork.

I wouldn't hesitate to deduct it.

Linda Dorfmont E.A., CFP, CSA
And former aerospace engineer

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

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