Re: Tax confusion
- From: "D. Stussy" <spam@xxxxxxxxxxxxxxxx>
- Date: Sat, 26 Apr 2008 22:06:25 -0700
"sailorman" <jimmitsailor@xxxxxxxxx> wrote in message
news:239d3367-94bd-4440-95d8-284653dc4032@xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
Hello,new here.I am hoping that this the format I have been looking
for.I am a seaman,and until recently,I spent many years as a
ChEngr.employed on ocean tugboats and large commercial fishing
vessels.In 2007 two major events changed my life and my tax status.I
bought a 32 ft.boat,plannng to start a fishing charter business in San
Diego.I bought the boat in 2006,and started a business account at a
bank in 07'I put another $7000.00 cash into it after paying it off in
a year.I also put $5000.00 into dock and various expenses.I went back
to work in Alaska to generate the capital I needed to make this work.A
month after I returned to the tug ,I was seriously injured in an
accident at sea.I was medivac'd to Anchorage where I paid for 14 days
motels and meals and transportation to and from various specialists,x-
ray labs and CAT scans etc.I was sent then by insurance co.to
Calif.where I had family and could receive medical treatment closer to
home.From July til late Jan.08'I visited 3 specialists,had 3 spinals,a
mylegram,2 MRI's and a lam/fusion.I went back to San Diego when I
finally talked the Ins.adjuster into allowing me to get treatment near
my boat/home.Now the questions.Can I deduct the DOT per diem for the
motel and meal expenses that were not reimbursed.My day rate on the
tug included my meals aboard the vessel.The company paid me the same
rate minus normal withholding taxes and Soc.Sec.and Alaskan
unemployment fees.I was out of pocket for all expenses until I
returned to SanDiego.A month of expenses that came to over $5000.00I
am told that I cannot claim depreciation on" my boat" because I earned
too much.The boat did not earn a dime.My wages all were generated as
an employee for another company.That company does not have a standard
per diem account for employees.They reimburse when it benefits
them.And since they pay a lot for insurance etc.etc.they did not cover
a lot of my expenses after I left the boat.But neither did the
insurance co.IRS says that I can not claim these exp.unless I paid
$3870.00 in medical fees.Since I did not pay for the company insurance
plan.This the 7.5% AGI plan.When did I quit being a U.S.Mechant
Marine?We have always had a travel and meal allowance when travelling
to and from ship and home port.I found that disability pay is now
taxed like regular income.You can't claim expenses incurred through
injury,even though they are fundamental costs of survival.I discovered
that I am considered a employed seaman when it comes to taxing
unearned wages payed by a tugboat company and theyr'e insurance
providers.But at the same time not a seaman when it comes to allowing
normal and historic deductions that have existed for years in our
unique industry.Either I am a sailor or I am not.Give me the
opportunity to recoup some of part of a disastrous year.I know I had
to make somebody mad with this rant.I apologize.But am desperate for
some help here.I have tried the tax in a box options and that isn't
the answer.Too many variables and events.Anyway ,sorry but hopeful for
an answer that works. Jim
Per-diem allowances that are allowed for business travel in lieu of records
for actual expenses can't be used for medical expenses. You need records
for your actual expense to compute what you may deduct, subject to the 7.5%
AGI floor and other limitations on itemized deductions.
.
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