atpcliff

If by "most people", you mean the top 0.1%, then you are correct.

The "positive" tax changes for individuals will be going away in a few years, but the positive tax changes for businesses are permanent.

Our deductions were over $40K, and my PerDiem deduction was $18k...all gone...

But new deductions were created for the 0.1%...they desperately need to upgrade their old Gulfstream jets to the -650!

theUpsideDown

Remember, its trickle down economics...in other words theyre peeing on you.

Blueskies21

You must work alot and stay in high cost cities. Usually our per diem is at most 30-40 dollars under the federal meals and incidentals rate. Takes a lot of nights away to get 18,000 40 dollars at a time. Like 450 nights in a year. Are you sure you were doing it correctly?

theUpsideDown

Hes not doing the 80% or hes off by an order of magnitude.

PotatoChip

The lowest cost city is about $44. Many cities are well over $100. I’ve had up to $27,000 in deductions in ME&I one year. Throw in a long term training event in a place like MIA, SFO, DEN, etc abs it adds up quick. We don’t all overnight in BGR.

preflight

I just used the FLICA tax report amount and figured they could help take the heat if I ever got audited...

Is FLICA even trying to sell the tax report this year?

Blueskies21

Yes, lowest cost cities are something like $40 a day. Our per diem is roughly $40 a day. In such a city you would have zero unreimbursed business expenses. Let's look at the cities you've listed. I'll use 2018 numbers. Miami is $64 a day - $40, then you have $24 unreimbursed business expense per day. San Francisco is $74 a day - $40. You then have $34 per day unreimbursed business expense. Denver is $69 per night - $40. Then you have $39 per day unreimbursed business expense.

I've never used the FLICA report, so I don't know what their methodology is. Maybe they are giving you credit for the full federal meals and incidentals rate without subtracting the per diem received?

I'd have to go research the treatment of Federal M&I for partial days, maybe Flica is giving you the full day rate on days you only recieved a little bit if per diem so the difference is much bigger.

Regardless, unless the person or company you're using offers an explicit audit guarantee I wouldn't count on them to defend you against an IRS audit. You REALLY don't want to end up owing money in an audit, taxes, interest and penalties are a killer.

I haven't done our taxes for this year yet but my initial calculations are we'll pay less total tax than in previous years. But we also have never taken any illegal business deductions; dry cleaning, hair cuts etc so that change doesn't hugely impact us.

flydiamond

They are not offering it anymore and have a statement on the site regarding that.

PotatoChip

I’ve always used EZPerDiem, never had a problem. I’ve also had situations where I spent 200 nights in Tokyo, with NO per diem
(Something like $45,000 in deductions). I’ve also had lots of layovers in LAX, SIN, and FRA. Those add up.
The sites don’t deduct your per diem, they just calculate the total based on current year federal rates. You then subtract your total per diem paid.
If I’m itemizing, lll deduct dry cleaning, unreimbursed uniform items (that don’t get worn not on duty), a percentage of my cell phone bill, app review services, job seeking costs, the costs of apps we use, and a few other items... none of that is especially much, but adds up. I’ve worked with an aviation tax professional and haven’t had a problem in 15 years. Not trying to get away with anything, just keeping what’s mine.

theUpsideDown

Sure but the IRS has statements interpretting what pilots can and cant use. I think ur fine on the phone as long as you're accurately accounting for the minutes. The reserve guy that never gets called really gets honked. Never mind no lineholder has any requirement to have or use a cellphone.

Clearly the IRS realized it was more xost efficient to remove the writeoff than actually audit every pilot and FA. We had an FA writeoff every meal and neither her nor her husband ever were audited. *Shrug* when the audits come, they dont go after the tax guy.