LMPD :: Louisville Metro Police Department
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2nd Judge Denies City's Request In Take-Home Car Controversy

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RE: 2nd Judge Denies City's Request In Take-Home Car Controversy

January 12th, 2009 @ 2:04PM (15 years ago)

You only get back anything you spend on equipment that is over 2 percent of your income. Employee business expenses are limited by that amount unfortunately. Of course, sometimes you can write part of it off on your Schedule C off duty if you are creative about it but most of your equipment purchases should probably be listed as employee business expenses.

Congress lays out laws and the IRS follows them. Just remember that it may stink not to get the extra money now but the extra taxes will get applied to your overall tax bill. If you pay in too much tax during the year, you will get a refund... too little results in you having to write a check.

The check is taxed because it is not part of an "accountable" expense plan. You can spend the money on anything you like without having to prove it to the city.