Car Allowance

[Gary]

Client received a 1099-misc for a car allowance from his employer. I assume this goes on Line 21. Can he then deduct auto expenses on 2106?

[ChEAr$]

Client received a 1099-misc for a car allowance from his employer. I assume this goes on Line 21. Can he then deduct auto expenses on 2106?

If he has a contemporaneous mileage log clearly establishing business miles, yes,
with the 1099 amount showing on same form as reimbursement.

[Burke]

You need to advise the client to notify his company that this is an incorrect way to report car allowance. See instructions for 1099MISC forms, page 3 under Employee Business Expense Reimbursements.

[newbie]

Client received a 1099-misc for a car allowance from his employer. I assume this goes on Line 21. Can he then deduct auto expenses on 2106?

New client yesterday with same situation. 2008 preparer did not include on line 21 or anywhere on the 1040 but instead only reduced the vehicle expense by entering the amount as a reimbursement on Form 2106. Would that be the correct way to handle under any circumstances?