employee unreimbursed expenses

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  • Homer
    Junior Member
    • Apr 2006
    • 3

    #1

    employee unreimbursed expenses

    I work for a nonprofit that did not have enough funding to pay the rent on the office space. I paid the rent out of my own pocket but did not get reimbursed by the nonprofit, my employer.

    Can I deduct this as an "employee unreimbursed expense"? If so, what forms, what info to send, etc.

    If not, is there any other way to take these expenses as a deduction?
  • veritas
    Senior Member
    • Dec 2005
    • 3290

    #2
    Sounds like protection of income. Off the top of my head I would lean towards the deduction.

    Comment

    • veritas
      Senior Member
      • Dec 2005
      • 3290

      #3
      By the way can't you get that cheapskate Burn's to pony up?

      Comment

      • Homer
        Junior Member
        • Apr 2006
        • 3

        #4
        Looking for REAL help here

        I know this is a friendly message board...but I need HELP. If I do take the deduction, is there anything that the IRS would like me to submit at the same time, what is the proper form, etc. Is it a schedule A itemized deduction?

        Thanks.

        Comment

        • veritas
          Senior Member
          • Dec 2005
          • 3290

          #5
          This would take a little research. However if the deduction was appropriate it would go on Sch A under misc itemized deductions.

          Does your client expect to be reimbursed? If so that would change things.

          Comment

          • Matt Sova
            Senior Member
            • Jun 2005
            • 645

            #6
            Non profit

            Perhaps the best thing would have been to donate the money to the non-profit and then have the NP take the deduction. However, perhaps the NP could write you a receipt and then you could deduct as charitable contributions.

            And, by the way, I did get the Simpsons reference veritas.
            I would put a favorite quote in here, but it would get me banned from the board.

            Comment

            • veritas
              Senior Member
              • Dec 2005
              • 3290

              #7
              Good suggestion Matt. My brother said the same while we were at lunch. That's what we talk about at lunch. We are sick ppl.

              Comment

              • Bees Knees
                Senior Member
                • May 2005
                • 5456

                #8
                I think that is your ONLY choice. Paying a business expense for your employer is NON-deductible. There are numerous court cases where a shareholder/employee of their own corporation paid an expense on behalf of their corporation, and the courts have ruled the expense to be non-deductible. In Lambert, the court said:

                "In this case, plaintiff seeks to deduct as his loss expenses of the
                corporate taxpayer. `It has long been the general rule that a taxpayer may
                not deduct expenses incurred on behalf of another taxpayer's business
                (citing Deputy v. DuPont, 60 S.Ct. 363, 366 (1940)). Similarly, a
                shareholder ordinarily may not deduct expenses he has incurred on behalf
                of a corporation.' Dietrick v. C.I.R., 881 F.2d 336, 338 (6th Cir. 1989)
                cert. denied 110 S.Ct. 565 (1989). `(T)he trade or business of a
                corporation is not that of its shareholders.' Betson v. C.I.R., 802 F.2d
                365 (1986). The magistrate finds that the expenses which plaintiff seeks
                to deduct were those of Aries and consequently are not deductible by
                plaintiff."

                Bottom line is, you can have your employer reimburse you, but you cannot deduct expenses that properly belong to your employer.

                Comment

                • veritas
                  Senior Member
                  • Dec 2005
                  • 3290

                  #9
                  In a different twist.

                  Money advanced to an employer in the form of a loan by an emploee has been allowed as a deduction when defaulted on.

                  Comment

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