Has anyone successfully used the Marin Johnson case as precedent in arguing their vessel is not their tax home? (Therefore deducting travel expenses to and from work from gross income).
God I hope someone has some good info on this! It would be nice to be able to write off my mileage again.
Just looked at. The website for sailor tax and it states its ok to deduct mileage.
Take it from someone who has been through an IRS audit,
<-------This guy right here!
It’s better to not try filing anything that is open for debate, when filing. If you get audited and the auditor decides that it’s not deductable, you’re gonna pay what you should have paid in taxes, interest and a penalty. It will end up more than double what you originally owed. The risk to reward scenario for that deduction isn’t worth it. I’m still sitting on a hemorrhoid pillow, from my last audit 5 years ago!
Use a CPA who specializes in transportation worker’s tax returns. I’ve been using the same guy for six years and he’s great. No questions or audits from infernal revenue. And if they ever do have a question, he will answer it. PM me and I’ll give you contact info.
There is another thread along these lines on here. Some one was claiming full M&IE deductions while on the ship and waiting in hall to get a job. While waiting, unemployed and searching away from home, yes it is deductible. While on ship, only incidentals which is about $5 a day. I would assume his company is paying travel, which he wouldn’t have any M&IE deductions. If you look up travel allowances on the online tax codes it’s pretty easy to figure out the basics. DISCLAIMER: I am not a tax guy at all, and this is my understanding alone. Again, search on gCaptain, take the case cited and google that. You’ll get plenty of reading and basic guidelines.