Article Date:
February 2008


Word Count:
401

 

 

Tool Allowance Fails


New tax rules have made the once-common tool and car allowances pretty much dead as expense reimbursement methods. A taxpayer employed a number of service technicians who performed their work at customers’ work sites using their own tools, ranging from simple wrenches to power tools and computer analysis equipment.

 

A promoter approached the taxpayer and convinced the taxpayer that he could save on taxes by converting part of the technicians’ W-2 wages to an allowance for tools.

 

The effect of ... Log in to view full article.

Log in to view full article
Already a subscriber?
 
Email Address

 
Password

Log In Send me my password

You'll be able to read the full article and get instant access to the last few issues of the Tax Reduction Letter

Not yet a subscriber?
 
with a money-back guarantee