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Author: billjohn Big red star, 1000 posts Old School Fool Global Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121585  
Subject: Job expenses in excess of income? Date: 12/9/2000 7:24 AM
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Can you deduct job related expenses if they exceed your income from the job? I was recently elected to the state legislature which pays a minimal "salary." My expenses will exceed the pay.

Thanks, Bill
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Author: TMFExRO Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 42679 of 121585
Subject: Re: Job expenses in excess of income? Date: 12/9/2000 1:32 PM
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Can you deduct job related expenses if they exceed your income from the job? I was recently elected to the state legislature which pays a minimal "salary." My expenses will exceed the pay.

Congratulations on your election.

Paul gave an answer to your earlier question: http://boards.fool.com/Message.asp?mid=13830666. Given your strange situation, I don't see any problem with the expenses exceeding the income. It will be a miscellaneous itemized deduction subject to the 2% of AGI exclusion.

Another possible approach would be to treat the expenses of your service as a charitable contribution. I'm not sure if this would fly, and I don't have access to case law to see if it's ever come up. Perhaps one of your new colleagues will have some information gained from experience. Since I assume you won't be taking office until 2001, you don't need a definite answer for a while. Do track your expenses so you have the information once you know what to do with it.

TMF ExRO
Phil Marti

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