If I accidentally damage my employer's equipment and I pay his insurance deductible, can I use that as business expense?

[patrickelubey]

Company policy is driver must pay deductible cost in the event of a "chargeable" accident.  can I deduct that expense? 

[SweetieJean]

Are you a W-2 employee?

[taxes-com08]

No because it is not your expense.  It is the companys deductible.

[Opus 17]

It's also possibly illegal for your employer to do that if you are a W-2 employee.  You might inquire of your state government labor department.  If you are an independent contractor, you can have almost any contract terms as long as both parties agree.

[Opus 17]

If you are a W-2 employee, no.  Work-Related expenses are no longer deductible after tax reform.

If you are a 1099-MISC independent contractor, it would not be deductible as an ordinary and necessary expense of your work, since you don't own the damaged equipment.  But, if your contract allowed it, your client could withhold part of your agreed-on payment, and also not include it on your 1099-MISC.  That way you have less income to report and so pay less tax.

[Anonymous]

say you were an independent contractor and rented a truck. declined offered insurance because you had your own. . your at fault for damage and pay your insurance deductible.  would you deduct this on your taxes as a schedule C expense?  remember you don't own it.     I think the real question is whether, as an I C is he legally responsible to pay for the damage.    Of course as an employee - no deduction and it's probably illegal in most states even if employee signed an agreement  

[Opus 17]

If an independent contractor, it would depend on the terms of the contract.  I don’t know that such a contract would be enforceable but it’s not as obviously unenforceable as making a W-2 employee pay for damages.  Good question for a labor lawyer.  And as I suggested, I don’t think he can deduct the expense but the employer could reduce his contracted payment, which is technically different but has the same result.