In Howard v. Commissioner, T.C. Memo. 2015-38, the U.S. Tax Court concluded that truck stop electrification expenses were deductible, but travel expenses and a traffic ticket were not deductible. Facts & Procedural History Mr. Howard was a long-distance truck driver for a Nebraska trucking company in 2009. He logged business travel for 358 days out… Continue reading Truck Stop Electrification Expenses Deductible, But Travel Expenses and Traffic Ticket Are Not
Category: Tax Deductions
Over-the-Road Truck Driver Not Entitled to Deduct Travel Expenses
In Jacobs v. Commissioner, T.C. Summary Opinion 2015-3, the U.S. Tax Court concluded that an over-the-road truck driver was not entitled to deduct travel expenses for traveling away from home since he lived in his truck. Facts & Procedural History Mr. Jacobs is a truck driver. He operated his own truck prior to 2006, worked… Continue reading Over-the-Road Truck Driver Not Entitled to Deduct Travel Expenses
Car and Truck Expenses Allowed Based on Mileage Not Actual Costs, Absent Records
In Aivatzidis v. Commissioner, T.C. Summary Opinion 2013-105, the U.S. Tax Court concluded that a professional driver could deduct expenses based on mileage, but not for actual expenses. This case provides an example of why drivers should compute car and truck expenses based on mileage if they do not have sufficient records. Facts & Procedural… Continue reading Car and Truck Expenses Allowed Based on Mileage Not Actual Costs, Absent Records
Insurance Agent Denied Depreciation Deduction For Airplane
In Brown v. Commissioner, T.C. Memo. 2013-275, the U.S. Tax Court denied an insurance salesman’s bonus depreciation deduction for his private jet as it was not placed in service in the tax year. The case highlights the highly factual nature of determining when an asset is deemed to have been placed in service for tax… Continue reading Insurance Agent Denied Depreciation Deduction For Airplane
Fashion Retailers Business Expenses Disallowed as Routine Substantiation Case
In Heinbockel v. Commissioner, T.C. Memo. 2013-125, the U.S. Tax Court considered a routine substantiation case and disallowed business expense deductions for a fashion clothing retailer. This case presents an opportunity to consider how to present routine substantiation cases to the IRS and to the courts. Facts & Procedural History Mrs. Heinbockel was in the… Continue reading Fashion Retailers Business Expenses Disallowed as Routine Substantiation Case
Taxpayer Use of Estimates for Deductions
Can you use publicly available sources of statistical information when you have no records to support the amount of your expenses? The court addressed this in Murray v. Commissioner, T.C. Summary Opinion 2012-66, which involved the IRS’s use of third-party statics. Facts & Procedural History Mr. Murray worked as a truck driver for National Freight, Inc.… Continue reading Taxpayer Use of Estimates for Deductions
Moving Truck Driver Allowed to Estimate Contract Expense Deduction
In Bauer v. Commissioner, T.C. Memo. 2012-156, the U.S. Tax Court held that a moving truck driver was entitled to deduct expenses to hire contractors to load and unload his truck by estimating the amount of the expenses. Facts & Procedural History Mr. Bauer was a moving truck driver. He was hired by clients as… Continue reading Moving Truck Driver Allowed to Estimate Contract Expense Deduction
Court Determines What Truck Driving Expenses Are Deductible
In Nolder v. Commissioner, T.C. Summary Opinion 2012-50, the U.S. Tax Court examined a number of different expenses incurred by a truck driver to determine which expenses were deductible. This case provides a good overview of the typical expenses truck drivers incur that are and are not deductible. Facts & Procedural History Mr. Nolder was… Continue reading Court Determines What Truck Driving Expenses Are Deductible
Per Diem for Truck Drivers (Explained)
Truck drivers are on the road and focused on driving. They do not have access to an organized office or have time to stop and process paperwork. So they are an easier target than some other types of taxpayers. This is why truck drivers are frequently targeted by IRS auditors. Truck drivers also earn above-average… Continue reading Per Diem for Truck Drivers (Explained)
Truck Driver Not Entitled to Deduct Meal and Supply Expenses
In Elsayed v. Commissioner, T.C. Summary Opinion 2009-81, the U.S. Tax Court reviewed meal and unreimbursed expenses incurred by a truck driver. This is a common tax problem for truck drivers. This case shows the difficulties truck drivers have in capturing and substantiating their expenses for tax purposes. Facts & Procedural History Elsayed was employed… Continue reading Truck Driver Not Entitled to Deduct Meal and Supply Expenses