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Employee tax wright offs.

Discussion in 'Business Management' started by beastmaster, Dec 7, 2016.

  1. beastmaster

    beastmaster Addicted to ArboristSite

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    I've luckly been placed in an higher income bracket of late. But with that comes a big chunk of it going into taxes.
    I am an employee but i use my own truck, pay for my gas, buy, own and use my own equipment, saws, ropes, etc. ,can i write this stuff off?
    I'll be talking to a tax pro somewhere down the line, but is there any hope?
    I tried to edit wright off to write off, but couldn't do it.lol
     
  2. Tim4

    Tim4 ArboristSite Lurker

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    At a minimum, you could start with keeping track of your mileage travelled each day. You cannot deduct commuting miles from your home to the office but other miles may be allowed if recorded correctly.
     
  3. Ryan'smilling

    Ryan'smilling ArboristSite Guru

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    Congrats on moving up in income!

    I'm not an employee, but I know several people who are and who are in similar situations, namely they work for someone, but need to purchase lots of their own equipment. My understandingg is that yes, they are able to deduct these expenses from their income as long as the items are necessary and reasonable. Of course, you should have proof of these purchases. Talking to a tax professional is a good idea.

    Another thing you can do is to lower your taxable income by making an IRA (not Roth IRA) contribution. Possibly a health savings account deposit as well, but I don't really know chit about that.

    As you know, you just need to get your income down to the lower bracket if possible. Of course, taxes aren't all bad, and another option is to be proud of making the contribution, but it does really suck to get a raise only to pay a bunch more taxes.
     
  4. ATH

    ATH Addicted to ArboristSite

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    You can either deduct mileage or actual expenses of the vehicle, but not both. It may be a good idea to do mileage in the first year because if you do actual expense in the first year you cannot use mileage in the future. However if you do mileage in the first year, you can float back and forth in future years. If you have an expensive to operate truck that you don't drive a lot of miles you want to expense it. If drive an economical vehicle and drive it a lot of miles, you will be further ahead using mileage...

    Look up form 2106. From the top of that form:
    Form 2106, Employee Business Expenses
    Employees file this form to deduct ordinary and necessary expenses for their job.
    An ordinary expense is one that is common and accepted in your field of trade, business, or profession.
    A necessary expense is one that is helpful and appropriate for your business. An expense does not have to be required to be considered necessary.
     
  5. Nbrcrnchr

    Nbrcrnchr ArboristSite Lurker

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    I m a CPA, any unreimbursed business expenses , gas oil saws rope specialty clothing some mileage can be deducted. Unfortunately since you are considered an employee these expenses are considered a misc deduction subject to 2.5 percent of adjusted gross income to be deducted on top of you have to be able to itemize. Pardon the Gramer and spelling I'm on my phone. The previous post on seeing 2106 is a good place to start
     
    Ryan'smilling and ATH like this.
  6. Ryan'smilling

    Ryan'smilling ArboristSite Guru

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    I just looked that up, jeez, that is unfortunate.
     

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