Excessive itemized deductions

[S T]

I should add

My client that was "iffy" for his deductins and mileage, I suggested that he contact his employer and request a "reimbursement plan" on his mileage, hoping to stave off the filing of form 2106.

But as I have siad, I have yet to prepare his 2009 tax return

Sandy

[erchess]

Echo Sandy

I would tell the client that for every dime deducted on a return I prepared for him I would need a reciept and a note of the business purpose. For expenses incurred starting the day he gets my letter the note of business purpose is to be written the same day and dated but he may go back and use his memory to write notes for previous expenditures. I would tell him that it is mltn he will lose the earlier deductions if audited and that I judged it mnltn he would be audited.

Oh I would also need a believable story for how his expenses exceed his income. I actually do have one client whose expenses do exceed his income but A he is taking concrete steps to reverse this and B he got help from friends and family and I have seen the deposit slips with contemporaneous notes of who they came from.

[S T]

I have had

BB,

I can only share

I had/maybe still have a client "similar" in the high mileage on a W-2 Construction Worker - suppose to be temporary job, or job to job sight and it became really iffy, so for 2008 and 2009, sent over some rules and regulations and sites (which are on the board). And just told the client I needed the "logs" and what the outcome might or could be.

However, my client's mileage deduction and expenses did not exceed the W2 income, the Schedule A via 2106 was extremely high (and uncomfortable for me) so I just implemented additional recording keeping prior to completeing the tax return.

Thinking you might need more documented info from the client, prior to completing the return so you can make a "professional interpretation". and possibly a longer "conversation" with the client.

My 2 cents worth,

Sandy

[Black Bart]

My (possible) new client's last year's return claimed almost $50K Schedule A expenses (mostly mileage) which were $5K more than income (had W-2 construction wages only). My view is that this amount (and it exceeding income) almost screams "Audit me!" This year's figures will be roughly the same.

What's the largest total of itemized deductions that you have ever claimed? This individual is going into business and would become a good, long-term, steady and profitable client. Would you consider doing this to latch onto his other future business?