DEDUCTING JOB EXPENSES (T/G 102) covers the self-discipline and determination needed for scrutinizing your W-2 and claiming travel, occupational, educational, and other expenditures incurred for the "convenience of your employer," including telecommuting office-at-home, and the purchase of computers and cellulars. Also covered:

• Mastering Form 2106
• Employer reimbursement policies
• Categories for "expense charting"
• Business use of autos & vans
• What is depreciable & not
• Meeting the "adequate records" test

Deducting Job Expenses
Book: 102
Table of Content

1.  DEDUCTIONS OVERVIEW                         1-1

    Tax Home Defined                            1-2
    Commuting Is Personal                       1-3
    Travel Is “Away Overnight”                  1-5
    Separate Tax Homes of Spouses               1-7
    Memorize These 4 Sections                   1-8
    Must Be “Ordinary and Necessary”            1-10
    The Forms Brigade                           1-11
    Temporary Job Assignments                   1-13
    Beware of Section 274 (d)                   1-15

2.  SCRUTINIZING FORM W-2                       2-1

    The 64-Page Mandate                         2-2
    Taxing of Fringe Benefits                   2-3
    Overview of Form W-2                        2-5
    Box 1: Other Compensation                   2-7
    Box 12: Benefits Included                   2-9
    Separate Statement or Multiple W-2s         2-10
    Box 13: See Instructions                    2-11
    Correlation of Boxes 1, 12, 13, and 14      2-12
    “Everything” NOT on Your W-2                2-13

3.  OCCUPATIONAL EXPENSES                       3-1

    Designate “Occupation” With Care            3-2
    Miscellaneous Deductions Role               3-3
    “Income” Defined by Reg. 1.212-1            3-4
    Job Hunting Expenses                        3-5
    Certain Educational Expenses                3-7
    Example Court Rulings                       3-8
    Union Dues & Publications                   3-10
    Work Tools & Safety Items                   3-11
    Uniforms & Maintenance                      3-13
    Seminars and Conventions                    3-15

4.  TRADE OR BUSINESS EXPENSES                  4-1

    “Trade or Business” Defined                 4-2
    Overview of Section 162                     4-3
    Regulation 1.162-1: For Starters            4-5
    Tools, Supplies, Et Cetera                  4-6
    Computers and Cellulars                     4-9
    Certain Deductions Limited                  4-10
    Other Listed Property Items                 4-11
    Gifts & Promotional Items                   4-13
    Attendance at Conventions                   4-14
    Active Discussions Meals                    4-16
    Entertainment: Tough Rules                  4-18
    Only 50% M & E Deductible                   4-21
    Local Business Destinations                 4-22

5.  TRAVEL EXPENSES                             5-1 

    Section 162(a) Revisited                    5-2
    Segregated Travel Accounting                5-3
    The “Primary Purpose” Rule                  5-6
    Business/Personal Allocations               5-7
    Simple 8-Hour Example                       5-8
    10-Day Allocation Example                   5-9
    Two or More Destinations                    5-11
    Foreign Travel Accounting                   5-12
    The “Business Necessity” Test               5-14
    En Route “Allocation” Required              5-16

6.  MOVING EXPENSES                             6-1

    At Least 50 Miles                           6-2
    For Commencement of Work                    6-4
    Time at New Location                        6-6
    “Moving Expenses” Defined                   6-8
    Use of Form 3903 or 3903-F                  6-9
    Reimbursement Precautions                   6-11
    Meaning of “Code P”                         6-13
    What If Excess Reimbursement?               6-14

7.  BUSINESS USE OF AUTO                        7-1

    Classed as “Listed Property”                7-2
    Business Use Percentage                     7-3
    Log All Business Trips                      7-4
    Verifying Odometer Reading                  7-6
    Mileage Entries on Form 2106                7-8
    Most Expenses Qualify                       7-9
    Standard Mileage Rate                       7-10
    Limited Cost Recovery                       7-11
    Luxury Auto Leasing                         7-13
    Leased Auto “Inclusion Tables”              7-14
    Employer-Provided Autos                     7-17

8.  BUSINESS USE OF HOME                        8-1
    
    Self-Motivated, Self-Doers Only             8-2
    Introduction to Section 280A ( c )          8-3
    Regular and Exclusive Use                   8-5
    Principal Place of Business                 8-6
    Much To-Do About Soliman                    8-7
    The One Sensible Opinion                    8-10
    Get Statement from Employer                 8-11
    Business use Percentage                     8-13
    List your Operating Expenses                8-16
    Depreciation of Home Structure              8-17
    
9.  REIMBURSEMENT & RECORDS                     9-1

    Reimbursement Variations                    9-2
    Keep Separate Records                       9-3
    Expense Accounting to Employer              9-4
    The Regulatory Language                     9-6
    Federal Per Diem Allowance                  9-8
    Prepare for “Full Substantiation”           9-9
    “Adequate Records” Defined                  9-11
    Annotating and Cataloging                   9-12
    Separate Reimbursement File                 9-13

10. MASTERING FORM 2106                         10-1
    
    Purpose of Form 2106                        10-2
    Start on Page 2: Vehicle Expenses           10-4
    Actual Expense Entry Items                  10-6
    Overview of Page 1/Part I                   10-8
    General Business Expenses (Line 4)          10-10
    The Reimbursement Quandary (Step 2)         10-11
    Allocating Your Reimbursements              10-13
    What if “Excess” Reimbursement?             10-15
    The Line 9, Column B Clincher               10-16
    The 50% M & E Law                           10-16
    Last Item on Form 2106                      10-18

11. DEPRECIATION DEDUCTIONS                     11-1

    Recovery Classes: Employee Property         11-2
    MACRS Methods & Conventions                 11-4
    Now for “Listed Property”                   11-6
    The Section 179 Election                    11-9
    Introduction to Form 4562                   11-10
    Form 4562:Listed Property Portion           11-11
    Form 4562:The Section 179 Portion           11-12
    Form 4562:MACRS Portion                     11-15
    Office-in-Home Depreciation                 11-16
    Transference to Form 2106                   11-17

12. SCHEDULE A (1040) WRAP-UP                   12-1

    Overall Role of Schedule A                  12-2
    Where Form 2106 Is Entered                  12-4
    The Lines After Form 2106                   12-6
    The 2% AGI Subtraction Law                  12-8
    Anticipate/Refine Your AGI                  12-9
    The “Standard Deduction” Threshold          12-10
    The 3% “Phase Out” Law                      12-12
    An AMT “Add Back”                           12-13
    A Cautious Prediction                       12-15