Hello,
I received a “conservative” opinion on from my company provided tax preparer and wanted to know if any CPAs had a different interpretation on what could be considered unreimbursed employee expenses when filing a US income Tax return.
The background - with a large Global organization I moved from the US division to the German division in 2015, with this my payroll changed from the US based legal entity to the German entity whom I have a German contract with.
In 2016 I received a payout of a 2013 deferred bonus from the US based company although I was not an employee at anytime during the year. During 2016 I traveled from Germany to work in the US based office multiple times at my own expense (covering Flights, Hotels, Meals, etc…) and did not receive reimbursement from my German employer.
In my current German role I continue to support certain US based tasks I formerly designed, implemented and managed. It is in my best interests (ongoing employment, US based deferred compensation and future career opportunities) to ensure these topics run smoothly so I support them in person when feasible. As my replacement was relatively new to the company 2016 required a significant amount of support these topics.
When reviewing IRS Publication 529 I saw the below blurb and feel like it potentially covers my situation
“An expense is ordinary if it is common and accepted in your trade, business, or profession. An expense is necessary if it is appropriate and helpful to your business. An expense doesn't have to be required to be considered necessary.”
Should I be able to claim any or all of my flight, hotel, transit expenses or is this completely unreasonable?
Thank you in advance for your insights
Kevin
