1 / 8

Chapter 9

Chapter 9. Transportation Travel Moving Expense (deduction FOR) Education Entertainment Other ……. Home Office. Company. Business Expenses Deductible. Unreimbursed EE expenses can be deducted as Misc. Expense. Employees. Transportation (local). Unreimbursed employment related travel

dareh
Download Presentation

Chapter 9

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Chapter 9 • Transportation • Travel • Moving Expense (deduction FOR) • Education • Entertainment • Other ……. Home Office

  2. Company Business Expenses Deductible Unreimbursed EE expenses can be deducted as Misc. Expense Employees

  3. Transportation (local) • Unreimbursed employment related travel • Not away from “tax home” • Commuting not deductible • What about commuting from 1st job to 2nd job?? • Travel to job sites / other offices (in the community) • Computation • Mileage – 44.5 cents per mile (versus actual) • Depreciation – for basis purposes (17 cents)

  4. Travel – (broader concept, away from home) • Transportation plus meals, lodging & expenses while away from home overnight. • Temporary versus Indefinite ( < 1 year) • Conventions – must be “business” related • Education – continuing ed • Business / Pleasure – trip must be “primarily for business. • if not, transportation not deductible. Meals and lodging are allocated between personal and business. • transportation expenses must be allocated unless: • trip is 7 days or less, or personal percentage < 25%. Domestic Foreign

  5. Moving Expense (For AGI) • Moving expenses are deductible in conjunction with a new job • Distance Test – move > 50 miles more …… compare distance from old residence to old job and old residence to new job. • Time Test – 39 weeks out of 78 weeks or if Self Employed, 78 weeks out of the next 2 years. • Breakdown of Moving Expenses: • Cost to move household effects • Travel – miles @ 18 cents per mile and lodging • Meals – not deductible

  6. Education • Deductible as ordinary and necessary business expense • to maintain and improve skills • required by employer or by law • Not Deductible • if courses are to meet minimum standards • qualifies for a new trade of business • Qualified Tuition Deduction • $4,000 deduction in 2006 -- FOR AGI • AGI limit - $65K single and $130K joint

  7. Meals and Entertainment • 50% Reduction for meals and entertainment. Must be business discussion. • Club Dues – not deductible but specific expenses related to the (golf) club may. • Tickets – limited to face value (less 50%) • Skybox – use the most expensive seats in the stadium (less 50%). • Business Gifts – limited to $25 per year per donee.

  8. Other Expense • Office in the Home • Exclusively used for business on a regular basis • as a principal place of business, or • a place used by customers, clients, or patients • Home office expense cannot exceed gross income less all other business expenses • (Translation: home office expenses are fully deductible unless the home office deduction creates a loss ………. If so, deduction is limited to income but unused loss can be carried forward.

More Related