AboutGlenn D Schnabel Expertise I can answer most federal individual income tax questions.
I can not provide legal advise.
Experience I have worked for a CPA firm for over 11 years.
I have worked in private as well as government
I have recently been running a tax preparation office, mainly focusing on
individual income taxes
Organizations I have been affiliated with managing condo associations and as a member of a coalition to educate condo owners as to their rights and responsibilities.
Education/Credentials I have my B.S.B.A in Business Administration . Concentration in Accounting
I have gone to yearly tax seminars and have tried to keep up with the
evolving tax changes
Awards and Honors Over my years I have received local awards for contributions to worthy
organizations.
Past/Present Clients This, of course remains confidential
Expert: Glenn D Schnabel Date: 7/17/2008 Subject: unreimbursed expenses from employer bankruptcy
Question Hello. My husband worked for a company that reimbursed his expenses (gas, etc.; he was in sales). He used his own personal car. They filed bankruptcy and still owe him well over $800. I was told he can claim this on his taxes, but I can't figure out where! He received a W2 from them, so he was not considered an independent contractor. Thank you!
Answer Rebecca,
Thank you for your question.
He should use Form 2106 to claim business expenses. There you can either
1)Claim the business use of actual expenses plus business depreciation plus tolls and parking less what he was reimbursed from his employer.
the difference would go to Schedule A Itemized deductions , under miscel expenses, subject to 2 of his AGI (Total expenses less adjustments to income -Line 37 Form 1040)
2) His business miles times the standard mileage allowance ($.485/mile in 2007)to arrive at the $ then less how much he was reimbursed.
If you choose option 1 or option 2 the difference may be the $800 or higher
You should look at how this was reported in the prior year to see which method he used. He may have just been reimbursed for what his expenses were, with no difference. This would have been "a wash".
