Thanks for asking your question! I'm sorry to hear about your tax issue and I'm going to try my best to help you understand or resolve it.
you are correct...you can deduct travel expenses as unreimbursed employee expenses on a personal return or as a business return as an ordinary expense. I do not know why he would be advised to open a company simply for the ability to deduct travel expenses. This sounds incorrect to me.
Okay, I wanted to make sure that i didnt miss something. If this is the only explaination the prior accountant explained to him, then am sure that he was just following there counsel. He has not filed any returns under the two ein's that he created. I will send a request to have them closed. I will focus on the one corporation that has actual activity in and allocate the expenses between the 1040 for his employment that he is W2'd for and his food carts that he has properly incorporated
* I am
Sounds good. I don't know why you would have a separate entity for expenses. Sorry for any inconvenience
Is there anything else you need assistance with?
No, that was the only thing stumping me with this client. I think i will us this service for advice.
Thanks have a good one
You too. Please take a moment to rate my response as "excellent" so that I may receive credit for assisting you today
Is ther a way to get u again
Yes, you can request me directly by putting "for MyVirtualCPA" in the subject of your question.
aww man great!
Now i can finish working and enjoy my weekend knowing im on the right tract
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