Because we are Volunteers for a non profit organization that is governed by an agency ran by our government (USAF), and we are required to buy our own uniforms, gear, etc...We (as I heard) are in title to be reimbursed for such expenses.
With the way todays economy is going, and the prices on uniforms, and other things we need to follow regs and be "up to par", has anyone taken this into consideration and received a reimbursment for what they spent?
BDU's. Blues, Dress uniforms, gas and milage to events, gear, study materials,...it all adds up to a lot of money.......What have you spent, and how much did you get back if you have kept up on it?
I use financial software (MS Money) so when I purchase CAP items I tag the entry as such. That and logging my mileage to CAP activities is enough for my accountant. We do not get reimbursed. If you itemize on your tax return you can deduct those expenses to lower your taxable income. How much that saves depends on your tax bracket. Uniform clothing that is not CAP distinctive (gray pants) I understand does not count.
That said, I am not an accountant, have never played on on TV, nor have I stayed at a Holiday Inn Express in the last year.
I write uniform items off every year, as well as mileage that isn't directly reimbursed. For your reading, the appropriate regulation is attached here:
http://members.gocivilairpatrol.com/media/cms/R173_004_3C78BD19C872E.pdf
Quote from: phirons on March 31, 2009, 12:10:15 AM
I use financial software (MS Money) so when I purchase CAP items I tag the entry as such. That and logging my mileage to CAP activities is enough for my accountant. We do not get reimbursed. If you itemize on your tax return you can deduct those expenses to lower your taxable income. How much that saves depends on your tax bracket. Uniform clothing that is not CAP distinctive (gray pants) I understand does not count.
That said, I am not an accountant, have never played on on TV, nor have I stayed at a Holiday Inn Express in the last year.
I believe if you designate a certain pair of grey pants as a uniform item, then it theoretically could be deducted if you claim that this is the clothing article's only purpose. Same for quite a few other things.
Quote from: Rob Sherlin on March 31, 2009, 12:02:07 AM
Because we are Volunteers for a non profit organization that is governed by an agency ran by our government (USAF), and we are required to buy our own uniforms, gear, etc...We (as I heard) are in title to be reimbursed for such expenses.
The 501c(3) status is what affords us the tax break. Some of the corporate stuff helps.
Quote from: phirons on March 31, 2009, 12:10:15 AMUniform clothing that is not CAP distinctive (gray pants) I understand does not count.
Why wouldn't they count?
Quote from: KB Article #73
The following is quoted from IRS Revenue Ruling 58-279 which is found at 1958-23 IRB 12 (this will have meaning to your tax advisor): "Held, since the organization [CAP] is a qualified done under section 170(c) of the [Internal Revenue] Code, the taxpayer may, to the extent of the limitations prescribed in section 170, deduct the nonreimbursed, out-of-pocket expenses directly attributable to the performance of such volunteer services, such as those incurred by the taxpayer for the operation, maintenance, and repair of a personally owned aircraft, automobile, communication system, and telescope, as well as those similarly incurred for the purchase and maintenance of distinctive uniforms which the taxpayer is required to wear while engaged in the official Civil Air Patrol activities and is prohibited from wearing except on such occasions. Such expenses are deductible as contributions "for the use of" that organization. Only those expenditures incurred for operation, maintenance, and repair, which are directly attributable to the use of such aircraft, automobile, communication system, and telescope in performing gratuitous services for such organization are deductible. No deduction is allowed for a proportionate share of general maintenance or general repairs of such equipment.. Held further, the foregoing principle is not extended to allow a deduction either for the fair rental value of such use, or for the depreciation occasioned by such use, of the aircraft, automobile, communication systems, or telescope, in performing volunteer services for the organization. . . . Furthermore, since liability and property damage insurance carried on a motor vehicle is for the protection of the individual, the premiums paid on such insurance do not qualify as an expense attributable to the use of a vehicle and, consequently, cannot be considered a contribution or gift within the meaning of section 170 of the Code."
As always, your personal tax advisor should be contacted to determine how this ruling applies to your individual facts and circumstances. The deductibility of charitable contributions is discussed in detail in IRS Publication 526, Charitable Contributions.
In the above case, to my non-lawyer/accountant understanding, "distinctive" means specific to CAP, not "corporate" in the way we use it. DBlair has it right - I have a closet full of clothing that is "CAP" only. I consider everything in there a "uniform", regardless of what it actually is, and wouldn't wear any of it anywhere else.
Uniforms, meals, equipment specifically for CAP, and other directly related expenses are potentially deductible.
See your tax guy for advice.This year I had over $2500 in out of pocket for activities, which is actually a pretty light year, and due partially to the higher-than-usual number of fully reimbursed ES missions I was on.
My highest year was over $5k.
I am very conservative in my taxes, don't deduct nearly everything I potentially could, and only for things which are fully, without question, for CAP, so I'd have no issue looking the friendly neighborhood tax man in the eye on this stuff.
I am also an MSF safety instructor and work for myself, so some of the equipment, etc., is cross-purpose, and I might only deduct a portion of it for CAP, work, etc.
Don't sign your 1040 based on my advice, but consider the above as fodder for the conversation with your accountant.
I started deducting my mileage a couple of years ago. It really adds up quick. Its 98 miles round trip from my squadron building to my house. Considering that we were having cadet and senior meetings on different nights, it really jumped. Now our meetings are consolidated, but it's still 4 times a month I drive 98 miles. And the quarterly wing Commanders call is 280 miles round trip. Luckily the quarterly group commanders call is only 3 miles away. Every couple of months I go over to the squadron building to work on paperwork and files.
I just wish I'd started deducting things 20 years ago when I first joined.
Quote from: DBlair on March 31, 2009, 12:29:12 AM
Quote from: phirons on March 31, 2009, 12:10:15 AM
I use financial software (MS Money) so when I purchase CAP items I tag the entry as such. That and logging my mileage to CAP activities is enough for my accountant. We do not get reimbursed. If you itemize on your tax return you can deduct those expenses to lower your taxable income. How much that saves depends on your tax bracket. Uniform clothing that is not CAP distinctive (gray pants) I understand does not count.
That said, I am not an accountant, have never played on on TV, nor have I stayed at a Holiday Inn Express in the last year.
I believe if you designate a certain pair of grey pants as a uniform item, then it theoretically could be deducted if you claim that this is the clothing article's only purpose. Same for quite a few other things.
Nah, that doesn't flush.
Quote from: IRS Pub 17Uniforms. You can deduct the cost and upkeep of uniforms that are not suitable for everyday use and that you must wear while performing donated services for a charitable organization.
Quote from: IRS Pub 17Military uniforms. You generally cannot deduct the cost of your uniforms if you are on full-time active duty in the armed forces. However, if you are an armed forces reservist, you can deduct the unreimbursed cost of your uniform if military regulations restrict you from wearing it except while on duty as a reservist. In figuring the deduction, you must reduce the cost by any nontaxable allowance you receive for these expenses.
If local military rules do not allow you to wear fatigue uniforms when you are off duty, you can deduct the amount by which the cost of buying and keeping up these uniforms is more than the uniform allowance you receive.
You can deduct the cost of your uniforms if you are a civilian faculty or staff member of a military school.
Also, there's a 2% floor on the type of deduction that mil uniforms fit into. CAP is a better deal.
The rules have changed in the last few years, and have tightened up, as you can see. The IRS ruling stated above is olde, and its provisions have been superseded a number of times. Read the current Publication 17 for the most up-to-date information.
As validation, I am currently a paid tax preparer. I do military returns on a regular basis.
[edit] Oh, yeah, the mileage rate is $0.14 per mile, which means that it can be better to keep track of actual expenses for your auto expenses. The records must be consistent, and accurate.
Quote from: IRS Pub 17Car expenses. You can deduct unreimbursed out-of-pocket expenses, such as the cost of gas and oil, that are directly related to the use of your car in giving services to a charitable organization. You cannot deduct general repair and maintenance expenses, depreciation, registration fees, or the costs of tires or insurance.
If you do not want to deduct your actual expenses, you can use a standard mileage rate of 14 cents a mile to figure your contribution.
You can deduct parking fees and tolls whether you use your actual expenses or the standard mileage rate.
You must keep reliable written records of your car expenses.
Kind of laughable what one gets for mileage by "volunteering" 2008 rate $.14 a mile, medical/moves $.19, & business use $.505. Apparently the "charitable/volunteering" rate is set by law. Of course if you are business it costs you more to operate your vehicle ???
Also generally in order to deduct any CAP expense as itemized deductions, you will need alot more deductions to exceed the standard deduction ($5450 single, $8000 head of household, $10900 joint/widower).
Personally I'd like to see volunteer unreimbursed expense go to the "adjusted gross income" (above the line are), perhaps included in block 24 "Certain business expenses of reservisits, performing artists, & fee basis goverment officials".
Remember that "adjustment to gross income", means you don't have to itemize everything, & you can get some deserving benefit of your additional volunteer efforts.
RM