Monday, February 6, 2012

Unreimbursed Business Expenses

Q.  Someone told me I can deduct my out of pocket expenses that are unreimbursed by my employer. Quite often I take business contacts to lunch or pick up postage, etc. to take to the office. Is this true?

A.  Unreimbursed business expenses as you mentioned may be deductible if you itemize your deductions. The catch is it must be a requirement of your employment, be ordinary and necessary, and be substantiated on a contemporaneous basis. Other restrictions may apply, so seek competent advice as this is an area known for abuses, which the IRS just loves to audit.

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