Law Enforcement Deductions-Sherrif on Horse

[10409000]

Good morning, so i have a client who is a sheriff and rides a horse for work. This year he wants to write off a horse trailer that cost him $14,000 and a new horse that cost him $9,500. I didn't feel comfortable writing those off so i referred him out. What is your opinion on that? Are sheriffs supposed to pay huge amounts like that for their occupation? are these things deductible on the basic schedule A unreimbursed employee expenses? I feel like his return would be audited and i don't want to touch it. Please let me know your thoughts. Thank you

[IRonMaN]

Where in the world does he work that they make him provide his own horse for work?  Something smells lutefisky here, but for the federal return it really doesn't matter since employee business expenses don't exist.

[IRonMaN]

But just to warn you, someone may stop in later telling you to check pub 17😁

[10409000]

LOL! Oh yes that always crosses my mind to check pub 17 🙂 

[10409000]

LAPD is who he works for so he wants to benefit from the California state deduction. 

[IRonMaN · Accepted solution]

You learn something new everyday 🤔

LASD.org - Information Detail (lasdnews.net)

[TaxGuyBill]

Does his employer require him to have a horse?  And the employer won't pay for it?

I haven't dealt with such a situation, but my first thought is to use a business percentage. 

[abctax55]

(Slightly off topic) I had a client years ago that used his horse for search & rescue.  We claimed expenses x a % as a charitable deduction.  Upon audit, the auditor said no; I argued that you get cents per mile for charitable for a vehicle, so why not allow *something* for the horse expenses ?!?!  The auditor conceded 🙂

[10409000]

good to know thank you for sharing 🙂

[BobKamman]

Not LAPD but LA Sheriff's Department.  Why does this not qualify as a charitable contribution (for benefit of local government)?  Probably, because he still owns the horse and trailer.  Mounted police are not that uncommon but canine units are a lot more common, and at least back in the good old days before they decided to defund the police by taking away tax deductions, unreimbursed dog expenses were allowed as EBE.  

Facts and circumstances.  How often is the horse ridden, outside of police duties?  How often is the trailer used?  And does feeding the horse, cost as much as feeding a horse?

[BobKamman]

There’s a 2009 Tax Court case involving a DC police officer assigned to a K9 unit who was required to build a kennel at home, at his own expense. The court allowed the $3,500 cost as employee business expense, Section 179 for a Section 1245 asset, even though no Form 4562 was filed with the Schedule A. TC Summary Opinion 2009-109 David and Trang Le, Petitioners

[qbteachmt]

"Please let me know your thoughts."

One thing to bear in mind when a taxpayer client wants to "write off" something significant, is to educate them on the difference between expenditure and expense. A horse trailer is not all used up in one year, so even if it qualifies under business use, there is no write off of that $14,000; there is only how to handle that asset class for the tax year in question, such as depreciation, repairs and maintenance, and other operational issues which are not the same as ownership.

Also, watch out for jobs where the taxpayer tells you they are typically expected to spend large amounts of money, and then you find out their compensation package includes provisions or even allowances, and they don't understand how things like allowances, accountable plans, or any other provisions applies to what they tell you, "I had to do it like this." If it truly is burdensome and ordinary, it would be in the compensation package. No one in any sort of local governmental entity would be in a position of having something be arbitrarily left to the employee to handle as they want to handle it. There would be policies and procedures in place.

[PATAX]

Let me preface my remarks by stating that I do a lot of law enforcement returns both active and retired. I have never seen an officer have to ( i.e. required) spend that large amount of money without being reimbursed. Are the items also being used for personal pleasure? Lot of questions here. like Iron Man said there's no deduction for federal anyways so it would just be a state issue.

[BobKamman]

I have often seen first responders who get a uniform allowance or equipment allowance (including firearms and ammunition) not paid under an accountable plan, so added to the W-2.  Which at least increases the basis for figuring pensions.  When the law changed, first with the 2% cut and then the 100% cut, some departments set up accountable plans, but others did not.  

There's a deduction for federal if you can work it into out-of-pocket expenses for government benefit. If his job does not require him to have a horse, then he is just volunteering its use, along with the trailer.  

[dukemarya]

So, I am responding to the question regarding a deduction for a horse and trailer for a Mounted Sheriff.  We did not have all the information until my husband went through the Sheriff Reserve program and then the Mounted. You have to pay for the School and all needed uniforms and equipment. ( yes even bullet proof vests and firearm)  The academy lets you know ahead of time that this will cost you approximately $5000.00   If you want to be a Mounted Sheriff Reserve, you need your own horse and trailer.  You cannot even "use" anyone else's horse, as you train with your horse.  (Erie County, NY)  

Since the School, the uniform, the equipment and the horse and trailer all started to take place in 2023, what kind of deduction can you take? Then there is the  matter of boarding the horse.  Is any of that deductible?

[IRonMaN]

Zilch - at least for the federal.

[BobKamman]

Sounds like out-of-pocket charitable contribution to me.  

[qbteachmt]

"the equipment and the horse and trailer all started to take place in 2023"

It's called "placed in service." Your ProSeries tax prep program has a place to handle assets.

"what kind of deduction can you take? Then there is the  matter of boarding the horse.  Is any of that deductible?"

How is your taxpayer being paid? On a callout basis as a contractor, or as an employee? What sort of payouts are there for these required items? What else are these items used for: gymkana, gymkana or county fair security? Riding lessons (at the boarding facility)? There should be a handout that helps you know this, from the department.

Read here, as a place to start:

https://ttlc.intuit.com/community/tax-credits-deductions/discussion/reserve-mounted-horse-police-off...