UnReimbursed Employee Expenses

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PEEPLES v. Comm’r, Summary Op. | May 19, 2021 | Paris, J. | Docket No. 17117-17S.

Short Summary: Mr. Peeples deducted unreimbursed employee business expenses on his 2014 federal income tax return. The IRS disallowed the deductions and issued a notice of deficiency. Mr. Peeples filed a petition with the United States Tax Court challenging the proposed adjustments in the notice of deficiency.

Key Issues: Whether Mr. Peeples is entitled to deduct (1) certain unreimbursed employee business expenses and (2) tax preparation fees (under Section 162) for 2014.

Primary Holdings: No, Mr. Peeples is not entitled to deduct either because he failed to provide the Court adequate documentation or information that would have substantiated either the application of the Cohan rule for the deductions or the tax preparation expense.
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Written by TaxConnections Admin | Posted in TaxConnections

George Pan, vehicle expenses, move related expenses

Here Are The Changes From The Tax Cuts And Jobs Act That Affect:

Move Related Vehicle Expenses
UnReimbursed Employee Expenses
Vehicle Expensing
Changes To Deduction For Move-Related Vehicle Expenses

The Tax Cuts and Jobs Act suspends the deduction for moving expenses for tax years beginning after Dec. 31, 2017, and goes through Jan. 1, 2026. Thus, during the suspension no deduction is allowed for use of an automobile as part of a move using the mileage rate listed in here. This suspension does not apply to members of the Armed Forces of the United States on active duty who move pursuant to a military order related to a permanent change of station.

Changes To The Deduction For UnReimbursed Employee Expenses

The Tax Cuts and Jobs Act also suspends all miscellaneous itemized deductions that are subject to the 2 percent of adjusted gross income floor. This change affects un-reimbursed employee expenses such as uniforms, union dues and the deduction for business-related meals, entertainment and travel.

Thus, the business standard mileage rate listed in here, which was issued before the Tax Cuts and Jobs Act passed, cannot be used to claim an itemized deduction for unreimbursed employee travel expenses in taxable years beginning after Dec. 31, 2017, and before Jan. 1, 2026.

Written by George Pan, EA | Posted in Move Related Vehicle Expenses • Move-Related Vehicle Expenses • UnReimbursed Employee Expenses • Vehicle Expensing