TP gets reimbursed for employee business miles at the standard mileage rate in an accountable plan. He buys a honkin' big truck and actual expenses (including sec 179) are more than SMR. Auditor is disallowing the excess saying if employer reimburses SMR, then that is all that is allowed. Truck is being used nearly 100% for biz. My take on this is that TP is trying to find a way to write off honkin' big truck that is not necessary for his management job, but is the auditor on the wrong tangent in arguing that tp cannot take actual expenses for vehicle if full SMR is being reimbursed? All I can find is if employer reimburses at less than SMR, you can take additional.
Of course, once all that depreciation is used up, I think he would have to take any excess reimbursment over actual as income....
Of course, once all that depreciation is used up, I think he would have to take any excess reimbursment over actual as income....
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