sounding off...

[Possi]

Police officer came in today. New client from Florida had a client information sheet from the prior tax preparer company.
Seems this company is so busy doing Police and Firefighter returns that they don't do anything else.

red flag

The client information page had things like "gym membership, grooming, vitamins and supplements" on it.

The Sch A had those items listed right up as business expenses, as though it was perfectly acceptable.

My son is a police officer and I don't take those deductions! I do a lot of police returns and I will take an honest deduction to the mat.

Am I being too conservative? I KNOW these are not allowed. Please tell me I am right!!

needing affirmation,
~possi

[thomtax]

Possi - There was a tax preparer at Springdale, AR that told the law enforcement officers that he knew a lot of deductions for them that the other preparers in the area did not know about. I had read about the case, but it was one of the center pieces of presentation by the head of the IRS criminal investigation unit in Arkansas.

The preparer went to prison and at this time there are several officers that are on payment plans for taxes, penalties and interest.

Observation: Preparer must have been one of the dumbest people on earth. After he is paroled and comes home, I wonder how often he can pull out of his driveway without being pulled over for some infraction. I would think that some of these guys might be just a little "ticked off".

[Possi]

not me!

That was not the only thing those idiots did on that return, either. The 2106 for his wife had over 4000 in home office expense... just a line straight up deducted. No form.
Child care was for one child, but they used both children and split the cost to get double credit.
It might have made me look bad at not getting the whopping refund that they got, but I sleep at night. He seemed to appreciate my honesty.
It just ticks me off that people do this and the taxpayer truly had no clue.
thanks for the affirmation!

[erchess]

Gym Membership Grooming and Dietary Supplements

A firefighter or policeman has to stay in shape. If such a person told me that the department did not provide a gym I might allow the gym as a professional expense. Likewise for an employee of a company that requires executives to be trim and fit. Furthermore if the employer was willing to put in writing a requirement that the person use a certain barber or certain personal care products and/or dietary supplements I would have no problem deducting them as well. None of this has ever happened to me but it seems to me that it could happen and that under the specified facts the deductions would be legitimate. Am I wrong?

[geekgirldany]

There seems to have been an article from NATP about a bodybuilder using supplements and certain foods to get ready for competitions. I believe the IRS disallowed it. I forget the exact details.

I had several firefighters leave me last year because I would not take deductions for food, haircuts, gym membership, etc. From my understanding they were not required to contribute to a fund so I told them it could not be deducted. Must have found someone else.

If the employer is willing to put it in writing then you may have a case for the deduction. But working out in a gym is benefiting you not just on the job but in your general health.

I had one tell me they had to wear their hair short so they should be able to deduct it. My brother is a firefighter and he told me that they just did not understand that after the 2% limitation they are not getting much of a deduction even if they could take them.

[dsi]

My employer tells me I have to wear clothes to work. Imagine that! If I get it in writing, can I deduct their cost?

[Zee]

A firefighter or policeman has to stay in shape. If such a person told me that the department did not provide a gym I might allow the gym as a professional expense. Likewise for an employee of a company that requires executives to be trim and fit. Furthermore if the employer was willing to put in writing a requirement that the person use a certain barber or certain personal care products and/or dietary supplements I would have no problem deducting them as well. None of this has ever happened to me but it seems to me that it could happen and that under the specified facts the deductions would be legitimate. Am I wrong?

I wouldn't deduct anything in the situations you've described.

[SueBaby]

A firefighter or policeman has to stay in shape. If such a person told me that the department did not provide a gym I might allow the gym as a professional expense. Likewise for an employee of a company that requires executives to be trim and fit. Furthermore if the employer was willing to put in writing a requirement that the person use a certain barber or certain personal care products and/or dietary supplements I would have no problem deducting them as well. None of this has ever happened to me but it seems to me that it could happen and that under the specified facts the deductions would be legitimate. Am I wrong?

Talking about firefighters do they get any credits? I have one and he brought a paper they are to get $500 but where to put it if so? Teachers get $250 buy firefighters?

[Zee]

Talking about firefighters do they get any credits? I have one and he brought a paper they are to get $500 but where to put it if so? Teachers get $250 buy firefighters?

The Mortgage Forgiveness Debt Relief Act include language that excludes up to $360 of volunteer firefighter"s related income for federal taxation starting in 2008. But, I haven't heard of any special credits for firefighters. Is this a state credit perhaps? I think Louisiana may have a $500 credit for firefighters. There are strings on the firefighter's meals that are interesting if you do a search.

As a later footnote, in the limited internet research I've done, it appears that fireman credits has been introduced into legislation many, many, times. I even noted one that suggested a $1000 credit. I don't think any of the legislation passed.

[S T]

Several

Policemen, Firefighters and School Teachers,

There are a lot of preparers that deal with each job description , and have taken a position that certain items are deductible and haved created a huge client base. We see or hear about it every year.

About 5 years ago there was a taxperson (Calif) preparing Police Officers returns and claimed that all of their Deferred Comp was non-taxable when the began to withdraw on retirement. I don't know what happened to the tax preparer, but I think most of the returns were audited. I had a client say, that I would not be preparing their return for year XXXX since I stated I could not find any ruling to that effect, and believed it to be in error. The following year they were back for me to answer the notice from IRS and Calif.

Sandy

[Black Bart]

I think maybe you are on this one, EC.

...if the employer was willing to put in writing a requirement that the person use a certain barber or certain personal care products and/or dietary supplements...it seems to me that...under the specified facts the deductions would be legitimate. Am I wrong?

I can't imagine any circumstance under which an employer could compel employees to patronize a specific hair salon or use a specific deodorant/whatever, especially in the heavily-unionized public service occupations. But even if it was possible, I agree with the reasoning behind dsi's humorous response. I can't see that an employer's letter would have any bearing (he has no standing) on the deductibility of such general usage goods and services since everybody (well, almost everybody) gets haircuts and uses some sort of smell-swell/stop-stink occasionally.

[SueBaby]

The Mortgage Forgiveness Debt Relief Act include language that excludes up to $360 of volunteer firefighter"s related income for federal taxation starting in 2008. But, I haven't heard of any special credits for firefighters. Is this a state credit perhaps? I think Louisiana may have a $500 credit for firefighters. There are strings on the firefighter's meals that are interesting if you do a search.

As a later footnote, in the limited internet research I've done, it appears that fireman credits has been introduced into legislation many, many, times. I even noted one that suggested a $1000 credit. I don't think any of the legislation passed.

Yes I am from Louisiana and he had a paper from Baton Rouge state and it did have the $500 and the $1000. But I don't know anything about it and maybe to call the state and they would tell me and where to put it if they get it. Thank you.

[Zee]

Yes I am from Louisiana and he had a paper from Baton Rouge state and it did have the $500 and the $1000. But I don't know anything about it and maybe to call the state and they would tell me and where to put it if they get it. Thank you.

This link might help get you started, but It's the Louisiana bill proposing the credit. I'm not sure whether it passed, or not.

http://legis.state.la.us/billdata/streamdocument.asp?did=426750

[erchess]

I stand corrected in

regard to my earlier post in this thread. I think very good counter arguments have been made.

[David1980]

Louisiana does indeed have a $500 per year deduction ("exemption"). It's a code 14E goes to line 4 on Sch. E. They have to have 24 hours of continuing education and be an active member of LA state fireman's association or dept. personnel roster for state fire marshal's volunteer fireman's program.

See page 22 of LA IT-540 instructions.