Employee Business Expense
The most frequently asked tax questions related to Employee Business Expense
Auto - Mileage Rate deductions
Asked Thursday, January 26, 2012 by an anonymous userCPA Answer:
The standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be 56.5 cents per mile for business miles driven.
Auto expenses - Proof
Asked Thursday, January 26, 2012 by an anonymous userCPA Answer:
You should maintain a log or diary of your auto expenses.
If you use the actual expense method you should save the actual receipts for gas, oil, insurance, repairs, licenses and taxes.
If you use the mileage deduction method you need to maintain a log or diary which lists the date, destination, business purpose, mileage driven (odometer start/end) type and amount of other expenses incurred. Currently there are phone applications for mileage documentation.
If you use the actual expense method you should save the actual receipts for gas, oil, insurance, repairs, licenses and taxes.
If you use the mileage deduction method you need to maintain a log or diary which lists the date, destination, business purpose, mileage driven (odometer start/end) type and amount of other expenses incurred. Currently there are phone applications for mileage documentation.
Auto - Driving to work
Asked Thursday, January 26, 2012 by an anonymous userCPA Answer:
In general, costs of commuting between your home and workplace are not deductible. Costs for gas for your car, train, bus, tolls and parking fees are not deductible.
Conventions - spouses expenses
Asked Thursday, January 26, 2012 by an anonymous userCPA Answer:
If you give a business gift in the course of your trade or business, you can deduct the cost subject to special limits and rules.
Generally you cannot deduct more than $25 for business gifts that you give directly or indirectly to any one person during the tax year.
Keep receipts for all gifts you give for business purposes. These receipts will help you to prove your deductions if you are ever audited. Track your business gifts throughout the year so you don't have to go through all of your receipts individually at tax time. You should record who the gift was given to, what that person's relationship is to your business and how much the gift cost.
Generally you cannot deduct more than $25 for business gifts that you give directly or indirectly to any one person during the tax year.
Keep receipts for all gifts you give for business purposes. These receipts will help you to prove your deductions if you are ever audited. Track your business gifts throughout the year so you don't have to go through all of your receipts individually at tax time. You should record who the gift was given to, what that person's relationship is to your business and how much the gift cost.
Power company Lineman - foul weather gear
Asked Wednesday, January 03, 2001 by an anonymous userCPA Answer:
The costs of your foul weather gear is deductible as an itemized deduction subject to the 2% AGI limitation on IRS Schedule A.
Job Hunting
Asked Wednesday, January 03, 2001 by an anonymous userCPA Answer:
You may deduct expenses of looking for a new job in the same line of work whether a new job is found or not, if it is not your first job in that profession.
Expenses incurred in seeking your first job are not deductible.
Also job hunting in a different line of work is not deductible.
Expenses incurred in seeking your first job are not deductible.
Also job hunting in a different line of work is not deductible.
Plumber - gloves and boots
Asked Wednesday, January 03, 2001 by an anonymous userCPA Answer:
The costs of safety equipment such as special gloves and shoes or boots as a plumber are deductible as an itemized deduction subject to the 2% AGI limitation on IRS Schedule A.
Lobbying expenses
Asked Tuesday, January 02, 2001 by an anonymous userCPA Answer:
Payments to an organization that devotes a substantial part of its activities to lobbying which tries to influence legislation is not deductible.