Depreciation for vehicle on Schedule C when related to w-2

Technical topics regarding tax preparation.
#1
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I saw a new twist from another preparer (CPA) this year. Since the unreimbursed employee expenses went out the door a couple years, this preparer decided to take depreciation on a vehicle used in taxpayer's employment with a company from which he receives a w-2. Have also seen mileage taken on Sch C for this same purpose.

Some people just can't let go. I really don't know what is going thru his head unless I am totally out of the loop.
 

#2
Webster  
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On TPT, of course
Not a statutory employee, by any chance?
 

#3
sjrcpa  
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Was there any income on this Sch C? Or just car expenses?
 

#4
JR1  
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Wow. Some people....
Go Blackhawks! Go Pack Go!
Remembering our son, Ben Jan 22, 1992 to Aug 26, 2011.
For FB'ers: https://www.facebook.com/groups/BenRoberts/
 

#5
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NC
Not statutory employee, no income.

He has basically moved what used to be itemized deductions to Sch C to keep the deduction. I have never seen anything quite like this and was afraid I was losing my mind.
 

#6
JR1  
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Someone should turn that idiot in....that's way beyond just dumb. It's fraud.
Go Blackhawks! Go Pack Go!
Remembering our son, Ben Jan 22, 1992 to Aug 26, 2011.
For FB'ers: https://www.facebook.com/groups/BenRoberts/
 

#7
sjrcpa  
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Sadly I have seen it, too.
 

#8
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The Office
Bushmaster wrote:Some people just can't let go. I really don't know what is going thru his head unless I am totally out of the loop.


Well there are only two explanations right? He either has no idea what he's doing or is reckless and unethical.

Take your pick.
 

#9
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824
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28-Apr-2014 9:53am
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Eastern United States
I've had clients ask me about this as they "know someone" who takes the deduction. There was a preparer in our area who would take deductions for employees on a C, but I've not heard anything about her in two years. Don't know if she is still in practice.
 

#10
taxcpa  
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716
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USA
Couple years ago, when 2106 was still used, I had a new client come in with one that had mileage as well as repairs for the same vehicle. For a bonus, they also omitted the non accountable amount paid to the employee each month.

This was done by a local enrolled agent, who is well spoken of. Still shake my head over that one.
 

#11
TaxCut  
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California
I've seen it done and I've had clients argue with that it must be legal since the other guy is doing it.
 


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