Law Enforcement Deductions

[S T]

I know that there are several posters on the board that deal with Law enforcement, I only have one or two.

I have a t/p that is giving me grief on a deduction for gym/spa/health club fitness as he is on the local city Swat Team. Also a bicycle that he purchased for fitness. What he is telling me is that of course "everyone of his "team" is dedcting the gym/spa/healthclub and also the bicycle" as they have fitness exams monthly

According to Pub 529, the gym/health spa/whatever, is not deductible and "I" understand that. I do not believe the bicycle is either as it is used not on the job, but just part of the fitness program.

I simply said that the IRS publications say "No" it is not deductible. Just because a "team" member or colleague is deducting the expense doesn not make it the right deduction or decision and then pointed out that it really is a minimal deduction producing minimal tax savings..

I believe that I am correct in NOT allowing the deduction

Can anyone that has more law enforcement clients than I do, give me an actual cite that I can forward to the client?

Thanks,

Sandy

[Possi]

Your Pub

My son is a police officer, so I have a ton of officers in my business. I am very clear on those deductions. Your pub is the only thing you need.

I don't allow OTJ meals, haircuts, or gym memberships. The pub is clear on that.

I might be a little more aggressive on others though. And I might get fussed at on this board, but I do take a percent of business use for cell phones, I take mileage to court, home security, uniform underarmor, shooting expense, guns, and uniform maintenance including laundering at your own house. The officers in this department are not reimbursed for any of these things and my guys have receipts.

I do feel very strongly that gym memberships, workout equipment and clothing, haircuts and OTJ meals should be deductible. I clearly do not take them. But I do take the others I mentioned. Don't lay me out over it, please.

I studied the pubs for what is NOT deductible. That part is pretty clear. I tell my guys that if a frivilous deduction is taken and questioned, and I know it will not pass muster, that me and 400+ of my "best friends" will be under scrutiny and it is not worth the risk. There are plenty of other deductions we can take that are very much necessary to keep them and their families safe from harm. These men and women are fighting wars for us right here at home. My son's life has been threatened and MY life has been threatened because of his job. They deserve an honest, aggressive, and legal tax return, and I believe that is what I give them.

I have won the respect of many, many police officers. My name is popular and my clients are comfortable knowing I'll stand with them on these tax returns.

There are plenty of fly-by-knight tax preparers who will do what any tax clients want, but everybody does not want a pushover. And those are the clients you want. Stick to your guns.

[S T]

Good Guidance and Thoughts

Thanks Possi,
I was hoping that you would post
I only have a few Law Enforcement t/p - but we all know how everyone talks amongst themselves at this time of the year.
This one t/p has only been in Law Enforcement for a couple of years - so still a "youngster" have another t/p that has been in law enforcement foever like 30 years- always ask questions as he has moved from the "field" to detective - so I always try to provide them with the best adivice.

I am with you on the maybe gym memberships if they are in "Swat" as they really need their physical fitness, but I do believe between the IRS Pub and the forums that I visited it is clear that it should not be an allowable deduction.

Hair cuts - and meals not sure - Everyone including me need a "haircut" and no doubt I need a "meal"

Cell phone and a laptop computer I have limited to a business/personal % basis. I have no problem with the uniforms, dry cleaning, and other items that they have to purchase. I subscribe to CFS - so they have a pretty good law enforcement worksheet that I supply each year.

Like I said and told the t/p - just because someone else is taking the deduction - does not make it the right thing to do.

Thanks for confirming - although I wish I had more in print to give to the client - so he could go back to his "colleagues" and say "take a look at this" !

Sandy

[Gary2]

Just to play devil's advocate, would a karate class count? It would seem to meet the requirements for job-related education, which don't explicitly require any sort of degree program or accreditation. And if so, where do you draw the line? An aerobics class? At least a karate class has a legitimate skill that can be improved and a mental component, but aerobics is less clear. What about a personal trainer?

My guess is that police, unlike some MBA students, don't have the inclination or the resources to litigate this, and thus a dearth of entertaining tax court decisions.

[DaveO]

I have a high ranking law enforcement officer who is required by his job description to eat at public restaurants in his patrol area. He claims a small amount of meals around $1200 per year. I've taken the deduction but at his income level it rarely makes it past the 2%.

[New York Enrolled Agent]

.

I have a t/p that is giving me grief on a deduction for gym/spa/health club fitness as he is on the local city Swat Team. Also a bicycle that he purchased for fitness. What he is telling me is that of course "everyone of his "team" is dedcting the gym/spa/healthclub and also the bicycle" as they have fitness exams monthly

Here's the headnote from Rev Ruling 78-128
Health spa expenses incurred by a law enforcement officer who, as a condition of employment, was required to be in excellent physical condition are not deductible as trade or business expenses under section 162 of the Code but are nondeductible personal expenses.

[S T]

This is great

THANK YOU!!! NYEA
That has now solved the Gym/Health Spa question

Sandy

PS - After sending over the letter ruling reference to the client - he emailed me back, ---" no that is okay I trust you! " Now whether or not he will share with his other "brothers" remains to be seen.

[taxea]

Tell your client, whatever he does, if he wants to stay in the good graces with the IRS not to go to whomever is preparing the other officers returns and if he wants penalties and interest to go to that preparer because you are not willing to jepordize your license or reputation.

[FEDUKE404]

Evasive moves

I have a high ranking law enforcement officer who is required by his job description to eat at public restaurants in his patrol area. He claims a small amount of meals around $1200 per year. I've taken the deduction but at his income level it rarely makes it past the 2%.

Of course, based upon what I've seen (spent a lot of time around officers) those in uniform quite often receive (expect?) free meals and more often than not regularly frequent those places which do provide such.

As for the gym membership, haircuts, etc - that is just not gonna fly. (Reminds me of the old days of "I'm on call so let me deduct my phone charges" days.) What's next - yogurt deductions and Lean Cuisine purchases?? And then there is the "I never wear a suit/dress but I have to buy one to wear to court" problem. As for deducting a computer, unless my memory is failing, I thought a computer for an employee had to be a job requirement for any such deduction to occur in the first place. Or maybe I just made that up?

While I have the greatest respect for the LEOs, word does get around as to what "their friends" are deducting on their taxes. Doesn't make it right.

I figured we would have some comments here about whether their 1099-MISC off-duty income was not subject to SE tax......or as I've frequently seen it done by some of those "cop-friendly" preparers just add it to wages ("....but I did report it on my taxes!")

FE

[taxea]

Of course, based upon what I've seen (spent a lot of time around officers) those in uniform quite often receive (expect?) free meals and more often than not regularly frequent those places which do provide such.

As for the gym membership, haircuts, etc - that is just not gonna fly. (Reminds me of the old days of "I'm on call so let me deduct my phone charges" days.) What's next - yogurt deductions and Lean Cuisine purchases?? And then there is the "I never wear a suit/dress but I have to buy one to wear to court" problem. As for deducting a computer, unless my memory is failing, I thought a computer for an employee had to be a job requirement for any such deduction to occur in the first place. Or maybe I just made that up?

While I have the greatest respect for the LEOs, word does get around as to what "their friends" are deducting on their taxes. Doesn't make it right.

I figured we would have some comments here about whether their 1099-MISC off-duty income was not subject to SE tax......or as I've frequently seen it done by some of those "cop-friendly" preparers just add it to wages ("....but I did report it on my taxes!")

FE

Re: Your last paragraph. Honolulu Police have a letter from IRS that allows this very thing. Be careful it might be legit.

[Davc]

I had one who had been deducting Travel, lodging, and meals (at the business per diem rates) to participate in a police Olympics in Australia every summer. All his friends deduct those expenses. I only did his return once.