Category Archives: Business Tax Deductions

Articles and tips related to business tax deductions by James E. George, CPA

Employees’ Business Expenses Must be Documented

Employees’ Business Expenses Must be Documented

A deduction is available for money an employee spends to perform their duties in the course of their employment if they are unreimbursed by their employer. This includes mileage, licenses, union dues, education and out of pocket expenses. The expenses must be incurred as a condition of employment or utilized in the performance of the employee’s duties at the employer’s request. Real Estate Licenses and Continuing Education are examples of often unreimbursed expenses. Mileage driving from a main job to a second job is also deductible.

There is a requirement to maintain and keep records of all deductions claimed. Good auto mileage records are especially important. In the past few years line item audits of auto deductions have increased dramatically. Other expenses are usually supported by printed receipts. These expenses should be reported on a form 2106.

Deducting Vehicle Mileage

QUESTION: Dear Taxman –  I use my car in my business occasionally. I have paid for all my gas with my debit card so I have a record of how much gas I purchase.  Is there anything else I need to do to deduct my auto through my business? ANSWER: Dear Reader – The record… Continue Reading