Railroad employees

[bookcrazychick]

Anyone have experience with railroad employees? I have a new client who claims there is a special rule that allows per diem for "moves". By that he means moving train cars from one location to another. But per his employer's policy they don't pay it to mechanics which is what he is. So he feels he should be able to deduct for his moves. I've been searching the IRS site and can't find anything. In looking at his last year's return, the former preparer did nothing with this.

Thanks.

[nancy65]

Although I do have some experience with railroad employees, and railroad retirees, this is a new one on me.

Maybe contact the employer (lots of luck there) to find out what their policy is.

[bookcrazychick]

Thanks Nancy. I have little to no experience with railroad workers. The more I think about what he said, I think what he is trying to do is take a per diem rate on Form 2106 since the other employees get paid per diem and since he doesn't he should get a deduction for it. I don't think there is any "special law or ruling". Just sounds like his employer pays SOME employees PD for the moves, just not mechanics. Which leads me to think maybe his role in the moves doesn't qualify him for PD.

I googled it and found another website with an almost identical question to the one I just posted. No one there had any answers either. LOL

[mwcpa]

it amazes me all of the people out there think that their industry has some special rule that others cannot take advantage of... and in some cases it is true.... but more often than not it's usually something they heard from a friends third cousins mothers uncle's preparer who took a 6 minute class in 1985 who has not updated their tax library since that time (other than to get a copy of a master tax guide)

generally for an employee to be allowed a deduction for meals overnight travel/rest period is required.... if moving the car from point A to point B happens in a day and the mechanic goes home each night then the cost of his food is a personal expenses.... I am sure the ones who get the per diem from the job are the ones who are required to spend the night someplace away from home or have it negotiated into their contract (I assume a union is involved here). I know of no special rule for mechanics that work for a railroad.

[rangerj]

Certain transportation employees get per diem because they are restricted by law as to the number of hours they can be "on duty", such as CERTAIN airline employees, including mechanics, certain rail road employees (not mechanics that I can find), truck and bus drivers, and mariners that come under U.S. Coast Guard jurisdiction. You can find a discussion of the subject in IRS Publication 1542, Revenue Procedure 2001-47 and 2000-48. There is most likely an updated Rev Proc. Also see section 274 of the IRC. For example after so many hours in the cockpit a pilot must rest no matter where he/she is at the time, and the same goes for the other workers mentioned, That is truck and bus drivers, train engineers and other crew members, and mariners. The usually get per diem and the company deducts the amount allowed via section 274, usually by a formal reimbursement plan. There may be some updated information as things, like contracts and regulations, change.

[bookcrazychick]

Thanks everyone for your input. The whole question is irrelevant anyway as they don't have enough to itemize. I only figured that out after digging through the rest of their stuff. I hate when I do that. LOL

MWCPA, you pointed out my NUMBER ONE pet peeve. Clients who like to inform me of special rules or laws they heard about from their neighbor, hairdresser, Joe the plumber etc. If you think Joe the plumber knows more about tax laws then the people you are PAYING to prepare your taxes, why isn't HE preparing them for you?

And if one more person tries to tell me that their commute to their office everyday is deductible 'cause Aunt Sally said so I may just scream!!!

[ilea]

I feel your pain. I was informed today that a client heard on the radio that if you make less then $55,000 you get an automatic $2,000.

[TheOtherMe]

Wheres my $2K?