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Our outside sales people receive a flat auto allowance each month regardless of how many miles they drive. In the past they would keep track of their miles and deduct them (less the allowance we provided them).

With the new tax changes I'm hearing that employees can no longer deduct meals, travel and other expenses.

 

I'm interested to what ideas the group has to minimize the impact of this change to outside sales reps?

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I assume you are talking about the changes that the Trump administration put in place which have nothing to do with the 2017 filing many of us are working on now.

I am nowhere close to a tax professional so don't take anything I say here as gospel. I am not aware of those business deductions being removed. However, with the new higher standard deduction, it is very likely that most of us will be filing short forms next year. It doesn't mean that we don't get the deductions...quite the opposite. It means that we get credit for a high enough level of deductions without having to claim them. For instance, if you claim a mileage deduction instead of claiming all your expenses (gas, oil, upkeep, etc.) it doesn't mean that you lost the upkeep deduction, it just means that the mileage deduction was better. If you have $15,000 in deductions but you are given a standard deduction of $25,000, there is no reason to claim the $15,000. I don't remember what the standard deduction was last year or what it is going to be next year but whatever the numbers are, it is my understanding that next year's is significantly higher.

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