Try to Use $300 Platnium Fee as a Deduction (Unreimb. Business Expense)
Jan 2, 2002, 12:56 pm
#1
Original Member
Original Poster
Join Date: May 1998
Location: Bloomington,IL USA
Posts: 223
Try to Use $300 Platnium Fee as a Deduction (Unreimb. Business Expense)
Has anyone thought of/tried to use part of the $300 fee for the plat card as a deduction - as an unreimbursed business expense - my thought is that I use the lounge access (NW and Continential) on business trips - but pay for the access through the plat card on my own.
Any thoughts on this???
Any thoughts on this???
Jan 3, 2002, 3:58 am
#3
Join Date: Jul 2001
Location: I have embarrasingly little status but my wife thinks I am great
Posts: 968
My US tax knowledge is a bit rusty but...
Expenses are deductible if they are ordinary and necessary expenses of carrying on a trade or business. Whether something is ordinary and necessary is based upon the facts. An expense is necessary if it is helpful to your business and ordinary if it is one that is common and accepted in your particular activity.
To get an exact answer you would need to read some tax cases for precedents.
Are you an employee? If so the expense is subject to the 2% of AGI limitation for miscellaneous itemized deductions. I hope that either you have other such expenses or your income is greater than $15,000.
Jan 3, 2002, 8:11 am
#5
Join Date: Sep 2001
Location: Connecticut
Programs: AA LT plat; Delta Gold; Marriott LT titanium; Hilton Silver
Posts: 292
I don't believe Airline Club memberships are deductible. So deducting the Amex fee for using the clubs would not be deductible either. If I can find a reference, I'll post it later.
Jan 9, 2002, 9:28 pm
#8
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Join Date: Jan 2002
Location: west of DFW airport
Programs: AA LT Gold 1.9 MM flying my way to LT PLAT
Posts: 11,074
I always think of doing this and then get hit with the Alternative Minimum Tax. So have never actually tried it. It seems logical to me that it should work, but who says the IRS is logical.
Jan 10, 2002, 6:25 pm
#9
Join Date: May 2001
Location: San José, California
Posts: 792
I think you can deduct this expense. It is common practice for businesses to have corporate cards. If there is a charge for such a card, so be it, you should be able to deduct it since it is a business expense.
The IRS should not tell you that you can get the Discover Card instead and not pay charges.
My rationale is this: you can take a business expense deduction on your office space. If you are in Manhattan, this will cost you much more than office space in Arkansas. As a result, your deduction for doing business in Manhattan will be higher. The IRS will not challenge your deduction and tell you to move to Arkansas....
I believe that if you demonstrate that most of the charges on the account are for business, then you're good.
The IRS should not tell you that you can get the Discover Card instead and not pay charges.
My rationale is this: you can take a business expense deduction on your office space. If you are in Manhattan, this will cost you much more than office space in Arkansas. As a result, your deduction for doing business in Manhattan will be higher. The IRS will not challenge your deduction and tell you to move to Arkansas....
I believe that if you demonstrate that most of the charges on the account are for business, then you're good.