Hello Everyone.
I had a question to ask about usage, mileage and vehicle write offs for full time consultants. Right now, my employer does not reimburse mileage or any expense when driving out to a client site. With this in mind, I have two questions:
1) In this case, am I able to write off via the mileage deduction or actual cost method to and from the corporate office?
2) Secondly, am I able to write off vehicle depreciation? I'm assuming the former covers the latter and I would not be able to do both.
Thanks.
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item 1 is almost never deductible since it is consider commuting expenses. but here is what some employers are doing. they establish an accountable expense reimbursement plan. say you auto expenses traveling from office to customer and back to office are $3,000. the employer and employee agree to a $3,000 reduction in salary. (saves employer fica and medicare taxes so this is why some go for it) . during the year the employee submits expense reports for the travel to and from clients. at the approved federal rate, the employer reimburses the employee up to the $3,000. this is nontaxable to employee and deductible by employer.
NO and NO. The new tax law eliminated (W-2) employee unreimbursed business expense deductions.
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