Accountants Who Come To Us For Guidance
David M. Kaufmann, CPA
2831 Wyecliff Way
Highlands Ranch, CO 80126
PO Box 632285
Highlands Ranch, CO 80163-2285
Your income is above $200,000.
You have legitimate work (wage) related expenses that are
not reimbursed. These expenses would typically be for travel, entertainment,
home office expenses (if allowable), depreciation of work related equipment, the
cost of an assistant, etc.
These are deductible as Miscellaneous Itemized deductions.
The problems with Miscellaneous Itemized deductions for
high income individuals are:
- The portion of Miscellaneous Itemized deductions up to
2% of your income is not deductible (technically income I am Adjusted
- Total Itemized Deductions are further reduced as income
increases in this income level.
- The Alternative Minimum Tax (AMT) becomes a factor for
many making $200,000 and above. The more one earns, the more the AMT becomes a
problem. Your work related expenses are not deductions for computing the AMT.
During (not after) the year, I can work with you and your
employer to see if there is a better way to structure your compensation. This
might result in increase deductions for the work related expenses.