This isn't a 2106 item any longer...but it still hits the New York itemized deduction schedule.
I probably shouldn't be worried about this but these conditions make me a little nervous:
a. Employer gives employee $1000 car allowance per month. I realize that whatever they call it...it's comp/income and ends up in box 1 of the W-2. No accountable plan in place.
b. Employee racks up 40,000 miles for business on his car. This guy is 100% accurate. He keeps a written log book which he transcribes into Excel, and he has dates, times, places visited, purpose of visit, etc. My best client in terms of record keeping. No question about it, he put 40,000 miles on that car and zero of it was commuting - it was going from job to job after going to his employer's office.
So this generates around $17,000 of itemized deduction on the New York return (after 2% floor reduction). It just makes me nervous when driving your car basically gives you the income leverage of another part-time job...
I'm not missing anything, right? I expect this to flag at some point in the state, so I want to make sure he's on solid footing.