Conference 7.286::digital

    To quote a famous computer programmer, ``it's easier to apologize than
    to ask permission.''  Don't ask for a letter, just claim on your IRS
    form that the expense is job-related.  If you get called in for an
    audit you'll have to justify it, so be sure you've got something
    reasonable to say in defense of your opinion.
        John Sauter

	I'd consult a tax expert but I believe what you need to do is
	prove that it was job required not job related. If it was job
	required then why didn't DEC pay for it?

			Alfred

    You may not be able to get anything out of this. Usually, with
    computers, you have to depreciate the cost of a number of years, and I
    think that this amount would be subject to the 2% limit for
    miscellaneous deductions. This means that the depreciable amount over
    2% of you adjusted gross income would be deductable.
    
    I believe that there are discussions on this topic (the financial side)
    in the INVESTING notes file.
    
    Michael Moy
    

I checked into this a few years ago.  I don't think the relevant tax law has
changed since then.  You have to get a letter from Digital stating that you
were *required* to purchase the equipment.  The IRS has made it nigh onto
impossible to deduct any part of the cost of computer equipment you have at
home, whether it's used for your job or not.  You can try it if you like, and
who knows, it may get by.  But I do not think it's a legitimate deduction. 
Whatever you decide, good luck!

							Steve

    Re: .1

                              IRS <> Reasonable

Job-related expenses such as tools, professional memberships, etc., are still
deductible, but only in excess of 2% of your AGI, which basically eliminates
it for almost everyone.  And the rules for deducting home computers indeed
tightened to near-impossibility a couple of years ago.  Unless your
circumstances are exceptional, I'd say to forget it.

				Steve

    I never did try to deduct my laptop. Being that it's tax time again,
    and a few DIR/MUMBLEFRATZ=XYZ didn't turn up any better place to ask...

    What's IRS policy on deducting business expenses that you've incurred
    but haven't expensed? I ran across a couple of receipts from our last
    fiscal year and was wondering if there was any hope...

    (I know the answer :-( but I thought I'd ask anyway!)

    /Peters

	... if you're someone elses' EMPLOYEE, ie, you have to exceed 2% of
your <last_entry_on_1040_page_1> before they can START to be deducted.  The
% might be wrong.  And no doubt, it had better be well documented!  :>)

    If you mean you purchased these items in tax year 1989, but forgot to
    claim them on your return; you're right, you can't claim them on your
    tax year 1990 return.
    
    You can file an amended 1989 return and get your money that way,
    though. I believe it's form 1040-X.

re: .7

  <<  What's IRS policy on deducting business expenses that you've incurred
  <<  but haven't expensed? I ran across a couple of receipts from our last
  <<  fiscal year and was wondering if there was any hope...

Are we talking big $$'s here?  When you say, "incurred but haven't expensed"
are you implying that this is something you COULD HAVE expensed [a legitimate
Digital expense), but forgot to?  And now you're wondering if maybe there's a
way to deduct the cost?

If it was a lot of money, it might be worth trying to get an exception on the
dates and get reimbursed now - much after the fact.

	/Marvin

    You need form 2106 - Employee Business Expenses.  Things that I've
    seen deducted (and please - I'm not endorsing these- it's just what
    I've *seen* deducted...):
    
     - home computers
     - car phones
     - home phones (especially second phone lines)
     - alcohol expenses while entertaining customers (since DEC doesn't
    	pay for it as a general rule...) *
    
    * meals and entertainment expenses are only 80% deductible
    
    As .1 pointed out, you can deduct only that portion of unreimbursed
    expenses that exceed 2% of your Adjusted Gross Income.
    
    This probably  belongs in BMT::INVESTING...yes ?

re .10

>are you implying that this is something you COULD HAVE expensed [a legitimate
>Digital expense), but forgot to?  And now you're wondering if maybe there's a
>way to deduct the cost?

Yup.

It probably falls under the 2% of AGI in any event, making it a moot point.


/Peters

    In any case, the IRS won't let you deduct any expenses that you WOULD
    have been reimbursed if you had asked to be reimbursed.  (i.e. you
    can't deduct it if you forgot to file an expense report.)
    
    Steve

    There's a related question, which is, what you do when you take out
    a customer or third party to lunch, for example, and it's "outside"
    what you're normally allowed to expense? (For example, "Only sales can
    take customers out to lunch.") It's clearly a business expense, but 
    you did it at your own discretion.

    I know... "if Digital benefits, they should pay; etc.", but this
    topic has come up in the past.

    I know other people who, for example, have gone to DECUS when their
    manager didn't think it "necessary", where the person got the time but
    picked up their own expenses.

    How have people dealt with this in the past?

    re: .14
    
    I once took a side trip to the Colorado Springs CSC, without my
    supervisor's approval.  The CSC was kind enough to pick up my expenses,
    and when I returned my supervisor said I could take comp time to make
    up for the vacation time I took to visit the CSC.
        John Sauter