Tip the van drivers...its what we do
. Now the guy with $400 in tips got looked into.
06-26-2017, 04:01 AM
#54
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Joined APC: Mar 2016
Position: Here and there
Posts: 1,906
AS A WORD OF CAUTION, TIPPING IS NO LONGER A TAX WRITEOFF. THERE WAS A COURT CASE 2 OR 3 YEARS AGO TO THAT REGARD. IT IS SEEN AS PART OF YOUR PER DIEM NOW. JUST AS A HEADS UP.
Do whatever you want and blah blah blah about "if you get caught". I'm just letting you know that my tax advisor changed that on me a few years back. She used to include it and now she said she can't.
Do whatever you want and blah blah blah about "if you get caught". I'm just letting you know that my tax advisor changed that on me a few years back. She used to include it and now she said she can't.
06-26-2017, 07:45 AM
#55
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Joined APC: Feb 2006
Position: 767A (Ret)
Posts: 6,248
It wasn't just any court, but the U.S. Tax Court, and the IRS was the Respondent. The tip issue was a minor part of the opinion, which cannot be used as a precedent, but it shows which way such a case will probably come out in the future. They are saying that tips are indeed a legitimate expense, but you have already been reimbursed via your per diem allowance.
http://www.watsoncpagroup.com/images...tinentalFA.pdf
http://www.watsoncpagroup.com/images...tinentalFA.pdf
06-26-2017, 08:29 AM
#56
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Joined APC: Mar 2016
Position: Here and there
Posts: 1,906
It wasn't just any court, but the U.S. Tax Court, and the IRS was the Respondent. The tip issue was a minor part of the opinion, which cannot be used as a precedent, but it shows which way such a case will probably come out in the future. They are saying that tips are indeed a legitimate expense, but you have already been reimbursed via your per diem allowance.
http://www.watsoncpagroup.com/images...tinentalFA.pdf
http://www.watsoncpagroup.com/images...tinentalFA.pdf
So the current language allows us to deduct tips as long as company paid per diem is less than our expenses. I haven't come across many people who can say that's their individual case.
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06-26-2017, 06:12 PM
#58
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Joined APC: May 2017
Posts: 227
Whaaaat? I am so totally lost on what you guys are talking about. I'm claiming plausible deniability and gonna keep on claiming my tips
06-26-2017, 06:24 PM
#59
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Joined APC: Mar 2016
Position: Here and there
Posts: 1,906
The bottom line is you can until the cited court case actually becomes IRS regulations which isn't a given that it will.
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06-26-2017, 07:24 PM
#60
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Joined APC: Jul 2013
Posts: 10,580
Many do, in $beer. If the van is at the curb waiting for you when you get outside or shortly after and the guy takes your bag, that's worth at least a dollar. He doesn't have to load your bags in the back and doesn't have to watch your flight to be there when you arrive.
