Creative Tax Deductions.

Discussion in 'General Discussion' started by Skull Pilot, Nov 1, 2011.

  1. Skull Pilot
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    Skull Pilot Platinum Member

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    I've been thinking about all you that whine about businesses getting tax deductions that employees don't get.

    Now if you consider that as an employee you are contracting to sell your labor and/or skills to an employer for a certain wage and benefit package, there could be tax deductions for you.

    I have used the example before that if as an employee you have to buy your own tools or use your personal vehicle for work that you are entitled to a tax deduction just as any business is.

    Now let's take this one step further.

    If you consider your body (brain included) as a necessary piece of equipment for the performance of your job just as a tool or a vehicle then shouldn't you be able to write off the cost of upkeep for your equipment that you are basically renting to an employer?

    If so then food costs, medical costs, etc are all business deductions.

    Do you think this argument would stand the test and be considered legal if the money and resources were put into a court case?
     
  2. Mr. H.
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    Mr. H. Diamond Member

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    Medical costs are already deductible if they exceed the Standard Deduction. There may be some qualifiers there, but you get the point.

    Food costs? Never.

    Haircut? Maybe. :D
     
  3. editec
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    editec Mr. Forgot-it-All

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    I have never understood why one cannot deduct the cost of getting to work as a legit business expense.

    The mileage deduction isn't nearly fair because that is really only reducing the taxes you paid for your gasoline.

    If businesses get to write off vehicles in full, why not their employers?

    Sans a vehicle most people could NOT have the jobs they do.
     
  4. Skull Pilot
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    Skull Pilot Platinum Member

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    Vehicles are considered a capital asset and therefore in most cases subject to depreciation schedules. The problem is separating the use and it's wear and tear between business and personal as only the use for business counts as an expense.

    Now if every person established themselves as an LLC and registered their vehicles under the entity there might be more tax benefit.
     
  5. Mr. H.
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    Mr. H. Diamond Member

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    Yeah, and the LLC could contract yourself out to your regular payroll job.
    Damn you're a genius. :D
     

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