Originally Posted by pokey9554
(Post 585967)
Tax Topics - Topic 511 Business Travel Expenses
So my interpretation is, yes, you can deduct your crashpad expenses. Joe |
A person may choose any state they wish for tax purposes as long as they can prove residence.
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You can live where ever you want, the IRS considers your base as your tax home. Your house with the wife and kids is a second, vacation home but you're not renting it out.
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I admit defeat on this topic, though we all probably agree these expenses SHOULD be dedutible. I'll read the whole publication before I start typing next time. I will continue researching the subject, but I think I've exhausted all resources with no contrary information.
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But I pay taxes in my home state where my family live in our house and commute to another state to work, is still my work state is my tax state eventhough I pay taxes where I live?
Thanks for everyone's input. |
I agree with what you're saying. If you read the full publication I posted, it specifically says you cannot deduct lodging or meals if you work other than the place you live if your assignment is permanent (over a year). The DOT may have an exception, but I cannot find it. Let me reiterate, I completely believe you SHOULD be able to deduct a crashpad/ hotel room, but apparently the IRS only allows businessmen in private jets to deduct those things.
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Originally Posted by 717200
(Post 586785)
But I pay taxes in my home state where my family live in our house and commute to another state to work, is still my work state is my tax state eventhough I pay taxes where I live?
Thanks for everyone's input. However, some states such as California and Alaska, can and do charge State disability tax to out of state workers. Of course, if you become disabled, you can collect disability from the state where you worked. A government has absolutely no problem enforcing mutually contradictory laws. Joe |
Originally Posted by pokey9554
(Post 586851)
I agree with what you're saying. If you read the full publication I posted, it specifically says you cannot deduct lodging or meals if you work other than the place you live if your assignment is permanent (over a year). The DOT may have an exception, but I cannot find it. Let me reiterate, I completely believe you SHOULD be able to deduct a crashpad/ hotel room, but apparently the IRS only allows businessmen in private jets to deduct those things.
If your assignment is temporary you can deduct the meals and lodging. Temporary is determined by two things: 1) Length of the assignment, generally accepted as being less than one year. 2) An end date that is scheduled in advance. This last part is what trips up many pilots. You may say I'm just going to take this bid to JFK until I can hold the 767 in Dallas, but there is no advance schedule for when you will get it. So even if you get it in six months, the IRS will say that your assignment was "indefinite". For IRS purposes, indefinite and permanent are the same thing. Even for a temporary assignment you can't deduct the costs (such as occasionally having to buy a ticket) of actually getting from your home to your workplace. Joe |
Originally Posted by pokey9554
(Post 586851)
I agree with what you're saying. If you read the full publication I posted, it specifically says you cannot deduct lodging or meals if you work other than the place you live if your assignment is permanent (over a year). The DOT may have an exception, but I cannot find it. Let me reiterate, I completely believe you SHOULD be able to deduct a crashpad/ hotel room, but apparently the IRS only allows businessmen in private jets to deduct those things.
Did you actually read the publication you posted? Next paragraph is a clipping from your link Generally, your tax home is the entire city or general area where your main place of business or work is located, regardless of where you maintain your family home. For example, you live with your family in Chicago but work in Milwaukee where you stay in a hotel and eat in restaurants. You return to Chicago every weekend. You may not deduct any of your travel, meals, or lodging in Milwaukee because that is your tax home. Your travel on weekends to your family home in Chicago is not for your work, so these expenses are also not deductible So, if you get audited-you will be paying taxes and penalties associated with deducting your crashpad expenses. IF you want to deduct some of your expenses, THEN, create/find a job that you work while you are at home (your residence). Your TAX HOME is still going to be where you make the majority of your income (e.g place your crashpad is located). So, when you leave your TAX HOME for the purposes of working at your residence, you can now deduct the travel to/from your crashpad as well as the expenses associated at your residence. E.G. for every day you work at your residence, can deduct the standard per diem or actual expenses. What you can't do is claim per diem for sitting reserve in the crashpad. Well, you can do anything you want, just might wind up with some adverse consequences. More than 1 pilot has tried the whole taxes are illegal so I'm not paying any. And, more than 1 pilot has tried claiming residency away from their true legal residence to avoid state taxes. (Hint-if you are claiming you live somewhere else, then don't have your name on the deed, don't be president of the HOA, etc.) |
Originally Posted by HanSolo
(Post 586050)
I agree with pokey, the pad as well as the time you are at the pad on call etc. is deductable by using the per diem rates as listed for that domestic city on this site.
GSA - Domestic Per Diem Rates If you want to start a Home Business start here. Lots of Free info. www.mlmstreamofincome.com Thats what I've been up to since I was laid off. |
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