LEO Tax write off items

[ironcross]

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.

Requirements of doing the job should entitle to it...

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.

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.

I know the Department I want to be working for requires professional grooming (SDSD). At least I know most Sheriff's Departments do.

Both of those should be accepted as a tax exemption if your work is requiring it. Weapons and Gear should count as 'tools of the trade'. No if and's or buts...

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!

If you paid for that rifle out of your own funds then it should count. But again BUT it might be depreciated value. I had to do this as owning my own 'news front'. Which can really bust something

[blakdawg]

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.

Depreciation is just a different way of writing something off - instead of seeing the tax benefit in 1 year, you take it over several years.

The CPA was correct about recognizing capital gain if a depreciated item is sold - so don't sell your old gun. If you must, trade it in as partial payment on a new one and you won't need to recognize gain (but the depreciable basis in the new gun will be lower).

[jtmkinsd]

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

I don't believe there is any such thing as a "random" audit. Either someone drops a dime on you, or you do something that raises a flag.

[blakdawg]

I don't believe there is any such thing as a "random" audit. Either someone drops a dime on you, or you do something that raises a flag.

They do a very small number of totally random audits every year - but it's a few thousand out of millions of returns filed, so the chances of getting hit with one are miniscule. They used to be called TCMP (taxpayer compliance monitoring program) - they got such bad publicity that they changed the name to NRP (national research project).

[jtmkinsd]

They do a very small number of totally random audits every year - but it's a few thousand out of millions of returns filed, so the chances of getting hit with one are miniscule. They used to be called TCMP (taxpayer compliance monitoring program) - they got such bad publicity that they changed the name to NRP (national research project).

I wonder what percentage of audits are actually random then, 1%-3%? I can't see them dumping resources to "monitor" compliance.

I kinda wish that somebody would actually take action on the recommendations from the stupid debt commission they hyped the heck out of. Flat tax = NO IRS!!! Two guys with a laptop could run the joint. Put them all out of work.

[Falconis]

Hey LR, I was told that it is worth it to go to Tim Kelly for 1 year to get the good low down on what is good and what isn't.

Having said that, I usually just listen to my friends then run it by my tax guy

[tyrist]

I really wish we would have a flat tax but the government likes the social engineering aspects of the tax code so I think a flat tax is a dream.