VCI Telecom project manager

[POCAHONTAS]

client works for VCI Telecom cell phone company, he had a company truck before he became a project manager in feb 2009, and then the company provided him with a gas card only and he has to use his own truck, he has to drive to the sites to make sure the job is done correctly, so since he receives a gas card he can't take the standard mileage but
so can he depreciate his truck since it is ordinary and necessary.

The company also gives him an air card for his lap top to use at the site so he can also depreciate his lap top correct??

thanks

[Bees Knees]

The gas card would be treated as a reimbursed expense. If the employee does not substantiate the mileage driven to the employer, the reimbursed expense would be treated as a non-accountable plan, subject to being included in W-2 taxable wages, in which case the employee would then deduct all costs on the 2106 (or take the standard mileage rate).

If the employee substantiates the mileage to the employer under an accountable plan, then the gas card would not be included in W-2 wages. The employee can still deduct the entire cost of operating the vehicle (or take the standard mileage rate) on the 2106, but then reduce that amount for the gas card amounts that are treated as reimbursed expenses.

[POCAHONTAS]

thanks for the info Bees Knees, but what about he computer can he depreciate the computer on schedule A??
Thanks

[FEDUKE404]

Computer

Last time I checked, for an employee to take computer depreciation expenses, said computer must first be required by the employer.

Sounds as if the extra money for air time is in the same genre as the extra money for gas, namely reduce whatever allowable Form 2106 expenses the employee has by these payments.

FE

[S T]

Computer

I agree with FEDUKE,

First you have to figure the personal vs biz use on the computer and depreciate, might even be straight line and then as an employee it will be subject to the 2% reduction of AGI, on Schedule A

See prior posts on accountable plan vs non accountable plan reimbursements, but you would have to determine whether or not the employer has included any of the air time card expenses in the W-2, to see if there was any additional expenses. My guess is probably not. If additional expenses the employee can substantiate, then 2106 and reduce by the amount of the reimbursement.

Sandy

[POCAHONTAS]

thank you all for your help