Expenses to Pick Up Tax Return

[RitaB]

Got a new guy here (TN) wanting to deduct mileage expense to travel to NY and back to pick up his 2008 tax return. My first thought was: "No way, that's why God made USPS, FedEx, and UPS. That's also why God made TN tax preparers."

My second thought was: "Dude, you can't even itemize."

So, I'm putting this on Sch A, line 23 to please the client and I'll research it later. (Probably). It's a good day.

But since I'm on here already, what say you, esteemed colleages?

[dyne]

If you enter a deduction for this on the return you are compromising your integrity and just
asking him to dream up more dumb deductions. Just tell him NO, it is not deductible!

[RitaB]

There won't be a deduction

There won't be a deduction since he can't itemize.

So, you're sure it's NOT deductible if he could itemize?

It's a dumb EXPENSE, but I'm not sure but what it IS deductible. I mean, he also paid the NY preparer more than he'll pay me, but it's still deductible, even though he paid too much.

[Peachie]

Two ??

There won't be a deduction since he can't itemize.

So, you're sure it's NOT deductible if he could itemize?

It's a dumb EXPENSE, but I'm not sure but what it IS deductible. I mean, he also paid the NY preparer more than he'll pay me, but it's still deductible, even though he paid too much.

Wouldn't thee mileage be commuting anyway? Also, subject to 2% if he could?

[RitaB]

Commuting

Wouldn't thee mileage be commuting anyway? Also, subject to 2% if he could?

Commuting for volunteer work for a charitable organization is deductible, commuting to the doctor's office and back is deductible, and yes, line 23 is subject to the 2% haircut.

He's not getting any benefit cause he can't itemize. As RitaL said in a another thread, it's hard to prove a negative. I was hoping to avoid studying. See my signature line.

I have no problem telling him, "No, you can't deduct your vitamins and OTC meds" cause it's right there in the instructions to Sch A, and I'll print it for him.

[BP.]

Interesting, and lucky for you he doesn't itemize, so you won't have to study/die figuring this one out.

Would not consider this commuting. I do have people who take deductions for trips to their investment advisor as an investment expense. Is this any different, in terms of tax prep being deductible?

[RitaB]

Too late, I'm studying

Interesting, and lucky for you he doesn't itemize, so you won't have to study/die figuring this one out.

Would not consider this commuting. I do have people who take deductions for trips to their investment advisor as an investment expense. Is this any different, in terms of tax prep being deductible?

I see in instructions to Sch A, that "convenience fees" for paying your tax by credit card ARE deductible on line 23. And, that's a dumb expense...

[ChEAr$]

Since business deductions have to be reasonable and ordinary, it would then follow that schedule a deductions should also be. Of course I've never seen anything in writing which dictates this treatment for schedule a.

Rita's question is similar to a client's wanting once to write off her travel back home because while there she ran in a race for charity.

[Gretel]

Maybe it depends on the complexity of the tax return?

If numerous entities and/or rentals and other complicated things are involved and he pays a substantial amount for his tax return, then it might be a ordinary and necessary expense.

[RitaB]

All due respect, Harlan

Since business deductions have to be reasonable and ordinary, it would then follow that schedule a deductions should also be. Of course I've never seen anything in writing which dictates this treatment for schedule a.

Rita's question is similar to a client's wanting once to write off her travel back home because while there she ran in a race for charity.

I'm gonna have to respectfully disagree, Harlan. People write off stuff on Sch A all the time that is neither reasonable nor ordinary. For examples, we've all got clients with a ridiculous mortgage and/or horrible interest rate. I've seen more than a few who COULD pay off their mortgage but keep paying interest cause of the tax benefit. They have more money than sense.

Then, there are the ones with interest on a time share. Stay in a hotel, people.

You can even deduct expenses to quit smoking - in essence, deducting expenses to "undo" a bad personal choice.

And, how bout those stupid investment fees when they could just download a Vanguard application, invest in Total Stock Market, and call it a day?

And, how are convenience fees to pay by credit card reasonable and ordinary?

[RitaB]

I can't believe ME

LOL, wow, talk about playing devil's advocate. I am now arguing with myself in favor of allowing this expense when I originally thought there was no way this is deductible.

Oh. My. Lanta.

[ChEAr$]

LOL, wow, talk about playing devil's advocate. I am now arguing with myself in favor of allowing this expense when I originally thought there was no way this is deductible.

Oh. My. Lanta.

BTW, you were actually disagreeing with me up there; we're on the same wavelength.

And Oh My! We're having fun today, 'pooling' our resources.
Speaking of swimming pools, .....

[RitaB]

Haha

BTW, you were actually disagreeing with me up there; we're on the same wavelength.

And Oh My! We're having fun today, 'pooling' our resources.
Speaking of swimming pools, .....

Yes, we ARE having fun, and thank you for letting me know we're on the same page. I would never have realized that. My head feels like I have been in a POOL and sucked water up my nose. Allergies, I guess.

BUT - I just realized that the NY preparer did not give my new guy the extra deduction for being over 65, so I get to amend his 2008 return (free, of course), and he will think I'm a genius. And, an affordable genius at that! Five minute party!

[Lion]

Maybe

Facts and circumstances! Was that the only or main reason for his trip? People can deduct The Box or Lasser's book or tax prep fees or certified mail or credit fees to prepare and transmit their returns, so I guess mileage if that was the purpose of the trip. Like you, I'd put it where he can see it if it gives him no benefit anyway. And, I would charge close to what the NY preparer charged. And, I would most definitely charge to amend the NY preparer's 2008 return. Or, charge the NY rate and throw in the amendment for free. That establishes your rate for 2010.

I have clients that moved that FedEx me their materials, but I haven't had one drive back, even from MA, unless they had other business in the area. If they were visiting friends and family or packing up some more of their stuff or picking up a few things at their favorite area store or..., then no deduction.

[RitaB]

Yeah, that's what he says

Facts and circumstances! Was that the only or main reason for his trip? People can deduct The Box or Lasser's book or tax prep fees or certified mail or credit fees to prepare and transmit their returns, so I guess mileage if that was the purpose of the trip. Like you, I'd put it where he can see it if it gives him no benefit anyway. And, I would charge close to what the NY preparer charged. And, I would most definitely charge to amend the NY preparer's 2008 return. Or, charge the NY rate and throw in the amendment for free. That establishes your rate for 2010.

I have clients that moved that FedEx me their materials, but I haven't had one drive back, even from MA, unless they had other business in the area. If they were visiting friends and family or packing up some more of their stuff or picking up a few things at their favorite area store or..., then no deduction.

First time I've seen such as this in 15 years. He says that's the only reason for the trip, and he's sooooo nervous about his taxes, I believe it. It's not a real tough return, but he makes it worse with his worry. Bet the NY guy was just trying to charge him enough to run him off. But the joke's on him, cause the guy was driving. LOL.