LEO Tax write off items

[Lrchops]

List what you write off on your taxes. See if we are on the same page!

I was audited by IRS and they said I cannot write off my duty equipment without a letter from my department detailing the justification for the purchase and that the purchase was made from personal funds. I call BS.

[BigDogatPlay]

If your department issues gear, I can imagine that the IRS wouldn't allow you to write off. The rationale, I am sure, is that they issue so if you go and buy different at your own expense, that's your choice. If the agency requires you to provide your own gear, then that is absolutely a legit deduction.

Once you trip an audit flag, unless it was wholly random, they'll scrutinize down to the last nickel.

I always wrote off dry cleaning expenses that were above the uniform allowance back in the day. The wool blend uniforms we were required to wear weren't exactly wash and wear.

Any non issued safety gear I had to buy out of pocket = deduction. I wrote of a couple of body armors because the agency wasn't issuing them.

[blakdawg]

List what you write off on your taxes. See if we are on the same page!

I was audited by IRS and they said I cannot write off my duty equipment without a letter from my department detailing the justification for the purchase and that the purchase was made from personal funds. I call BS.

Sounds wrong to me. Where are you in the examination process? You can appeal the exam result if you don't agree with it. I've prepared a lot of LEO tax returns - haven't had one audited yet, but the "rule" mentioned above doesn't have the force of law.

[Lrchops]

I already went through appeals. The appeals auditor asked for letters from my dept. So I got her letters from the Union, Dept, and Budget Coordinator stating the equipment I purchased was not issued and payed from personal funds. They rejected my letters. I ended up paying. First time in 25 years! They went back 3 years.

Fuggem. They have the final decision and there is nothing anyone can do. Impossible to battle the IRS and Feds. Obama has put out standing orders to Fugg us all. I know at least 30 people in my division who are being audited for the same reasons.

[tyrist]

If you what you say is true we are all in trouble.

[blakdawg]

Interesting. To be deductible (I assume these are showing up on a Form 2106 which ends up in the Miscellaneous (Subject to 2%) box on Schedule A, or are entered directly there on Schedule A) a job-related expense must be "ordinary" and "necessary".

"Ordinary" means that an expense that's common and accepted in the taxpayer's line of work.

"Necessary" does not mean required, but it does mean that it must be helpful and appropriate for work.

When you say "duty equipment", you mean things like belt, holster, firearm, cuffs, baton, vest, etc?

The only expense I know of that's been a source of contention has been when plainclothes officers/detectives want to deduct clothing expenses if they wear suits or "business casual" clothing for work - IRS and the Tax Court have consistently held that if clothing purchased for work is suitable for use off-duty, it is not deductible. (They don't care if you wouldn't personally choose to wear those clothes when not at work - the question is whether or not the clothing would be "suitable for ordinary wear".) When I've done returns for detectives this has always pissed them off (especially if they've been accustomed to deducting their uniform expense while on patrol, but then lose that deduction even though they have to buy a bunch of clothes when they switch to plainclothes) but it's settled law and not likely to change.

But assuming that's not what you're talking about when you say "duty gear", I think IRS is full of it. I wonder why they decided to pick on this issue.

[alfalfa]

I'm sorry to hear about your IRS problems, but this is exactly why I have a tax attorney prepare my taxes. I've been using Tim Kelly (the guy that writes the monthly tax article in PORAC) for the past nine years and have been very pleased with his service. He's not inexpesive, but his expertise is well worth the fee and includes him representing you if you happen to be audited.

Here's the public safety deduction worksheet he gives out.

http://www.timkelly.com/POLICE%202010.pdf

You'll notice that he doesn't allow his clients to deduct many of the other items other tax preparers do, but he stands behind all of the deductions he allows...and can quote the IRS rules or case law to justify it. If you look around on his site, you can find information on a lot of the non-deductible employee expenses that other preparers will claim you can deduct.

Some of the things that specifically aren't deductible:
-haircuts
-gym fees
-plain clothes/business attire
-on-duty meals

Even if you are already through with the audit process, it may be worthwile for you to consult a tax attorney regarding the matter.

Good luck.

[Lrchops]

Excellent. Thank you for posting the deduction worksheet.

[Notorious]

My buddy deducts his haircuts and clothes for his plainclothes assignment... I tell him he's treading on dangerous water but he won't listen... what do I know... I only sat through a semester of post-graduate level tax law.

[9mmepiphany]

The only guy I've ever seen get through an audit with his clothing (suits and sportcoats) write-off, did it by renting them...really

[oddjob]

Back in the old days my partner got audited. The IRS auditor was cool, but told him he really could not write off his kevlar vest. The vest wasn't "required" by the dept so he really isn't supposed to write it off. The auditor let it go though. Vests were not issued in those times.

My CPA told me I couldn't write off my guns, but that they had to be depreciated over a five year period and then if sold I had to claim capital gains. I gave up and let the CPA do his thing. His clients include surgeons, lawyers and other professionals so I figured he was right.

Now that I lost one kid as a dependent (still lives at home though) and I don't have enough deductions (house is almost paid off) I'm getting killed in taxes. I already have a rental. Oh well........

[SVT-40]

Not for active Peace officers. But Retired "public safety employees" can take a $3,000 federal income "exclusion" for health care premiums.

Explanation of Provision
The bill provides that certain pension distributions from an eligible retirement plan used to pay for qualified health insurance premiums are excludible from income, up to a maximum exclusion of $3,000 annually. An eligible retirement plan includes a governmental qualified retirement or annuity plan, 403(b) annuity, or 457 plan. The exclusion applies with respect to eligible retired public safety officers who make an election to have qualified health insurance premiums deducted from amounts distributed from an eligible retirement plan and paid directly to the insurer. An eligible retired public safety officer is an individual who, by reason of disability or attainment of normal retirement age, is separated from service as a public safety officer199 with the employer who maintains the eligible retirement plan from which pension distributions are made.

Qualified health insurance premiums include premiums for accident or health insurance or qualified long-term care insurance contracts covering the taxpayer, the taxpayer’s spouse, and the taxpayer’s dependents. The qualified health insurance premiums do not have to be for a plan sponsored by the employer; however, the exclusion does not apply to premiums paid by the employee and reimbursed with pension distributions. Amounts excluded from income under the provision are not taken into account in determining the itemized deduction for medical expenses under section 213 or the deduction for health insurance of self-employed individuals under section 162.

Effective Date
The provision is effective for distributions in taxable years beginning after December 31, 2006.


The term “public safety officer” has the same meaning as under section 1204(8)(A) of the Omnibus Crime Control and Safe Streets Act of 1986.

[18sam2011]

Wow. If what you're saying is true... I am a bit worried now. Hmmmmmmmm. I'm crossing my fingers... :-(

[Lrchops]

I purchased a Colt 6940 and all components for my primary duty rifle. Cost around $2800. My department signed a letter for the purchase stating it is for duty use. I wrote it off on my taxes as a business expense. Was this wrong? Tool of the trade!

I figure it is my job to keep as much of my earned income as possible. IT is the IRS job to take as much as possible. So it is a game in a sense. If they don't do an audit, them awesome. If they do the audit, then your pretty much gunna pay something.

My first 05 Audit they said I owed $6000.00 I provided all documents and receipts and the end result was that I owed $0. I guess it all depends on the auditor you get! Some are liars and some are not!

[SedaDog1]

I just read online that you may deduct the cost of haircuts if your department requires certain grooming standards. Not sure if this is true though.