Unreimbursed Employee Expense? Mileage

[mblatour]

I have a client who works for a cabinet manufacturing and installing company. He bought his own truck (makes the monthly payments, insurance, maintenance, etc.). He travels to the building/place of business from home and from there goes from job to job driving this truck. He travels some long distances on some days and gets quite a few miles.

He receives a check for $470 each month to cover his expenses; as well as he is supplied with a company gas card.

The $470 isn't taxed on the check, but is figured into his final income at the end of the year on his W-2.

He pays more for insurance, maintenance, and insurance per month then what the $470 covers; but his gas is covered for his business miles in full.

Is there a way to figure a deduction on this? I feel like there is something that can be done, but am not sure how to do it exactly. I have some ideas. He doesn't have a mileage log, so we don't be able to do anything with it for 2005, but we would like to get this figured out for him for 2006.

He said several of his co-workers take mileage; he never has. But we know that the full mileage amount is not deductible; nor are the full expenses.

What do you think?

[OldJack]

Your client is an employee and claims his unreimbursed business expenses on form 2106. He can claim actual expenses or mileage for his travel but he has to also declare ,on the form 2106, any amount the employer reimbursed but did not add to his income on the W2 and the net is either income or deduction on 1040 Sch-A. He can construct a reasonable estimate of his mileage for 2005 and deduct it under the Cohan rule or he can claim actual expenses including maybe depreciation on the vehicle.

Edit: Actual the Cohan rule does not apply to travel and entertainment but I have claimed it with an IRS agent and they have allowed deduction for amounts when the taxpayer has reconstructed a log with estimates.