Tax Planning/Work Deducations

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Question
Hi, I work 100% remote for my employer as an IT Systems Engineer.

I spend a fairly large sum of money each year for work that I wouldn't otherwise spend.

It appears that a lot of people deduct their IT test lab equipment on their taxes. (This is equipment used solely to provide resources to help with work, and nothing personal)

Here is the IRS Tech Topic:
http://www.irs.gov/taxtopics/tc513.html

It says that "they are subject to the 2% of adjusted gross income
limit". So an example, say I made 90k for gross income, does that mean I can only deduct up to 1800 dollars of the home lab cost?
Or would it be the other way around, the first 2% would be the "deductible" and not a deduction.

Please let me know if you know the answer and how I would file these on my taxes? If you're unsure, it would be helpful if you could possibly point me in the right direction to find the right answer.

Thank you in advance,
Greg

Answer
The 2% limit works differently than you expect.

Using your example:

If your AGI (Adjusted Gross Income) is $90,000 and your 513 expenses equal $2000 the First $1800 of the expenses in NOT deductible, only that which exceeds 2% of your AGI or $150.

Personal deduction of medical expenses works in a similar way but that is 7.5% of AGI.

Sadly there is little that can be done to reduce personal taxes. If you had a business relationship, instead of an Employee/Employer, that opens up a world of opportunity.

If that option is available give me a call and we'll discuss how to deduct 100% of ALL your business expenses, how to drastically reduce the taxes on ALL of the rest of the money.

Rick Fritzler
702-792-3392

Tax Planning

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Richard Fritzler

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I am in the business of tax planning for business owners. Our company helps business owners structure so that they can be reduce the taxes that they owe, making them far more profitable.

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Since 1986 I have been helping successful business owners reduce taxes, protect assets, and limit their liability. The company is Owelesstax, incorporated at www.owelesstax.com


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National Small Business Owners Association.
Nevada Association of Listed Resident Agents.
Citizens Legal Association
The Business Owners Institute

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Contributing author to "The Corporate Standard Newsletter".
I am also a writer for an email newsletter about business
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I am also an Expert in the areas of Tax Law, Retirement Planning, and Estate tax issues.

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I have been in the business of assisting business owners in reducing their taxes and liability for over 17 years. Providing retirement option that are not just tax deferred, and not limited to a "token" tax free contribution. Retirement plans that allow for total and complete access before you are 59.5 with no penalties

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