rom 2106

Department of the Treasury
Internal Revenue Service

Employee Business Expenses
(Please use Form 3903 to figure moving expense deduction.)

D> Attach to Form 1040.

1980

Your name

‘Social security number

Occupation in which expenses were incurred

Employer's name

Employer's address

Instructions

Use this form to show your business ex.
penses as an employee during 1980. Include
amounts:

© You paid as an employee;

@ You charged to your employer (such as by
credit card);

@ You received as an advance, allowance, or
repayment.

‘Several publications, available from IRS, give
more information about business expenses:

Publication 463, Travel, Entertainment, and
Gift Expenses.

Publication 529, Miscellaneous Deductions.

Publication 587, Business Use of Your Home.

Publication 508, Educational Expenses.

Part 1.—You can deduct some business ex-
penses even if you do not itemize your deduc-
tions on Schedule A (Form 1040). Examples are
expenses for travel (except commuting to and
from work), meals, or lodging. List these ex-
penses in Part | and use them in figuring your
adjusted gross income on Form 1040, line 31.

Line 2.—You can deduct meals and lodging
costs if you were on a business trip away from
your main place of work. Do not deduct the
cost of meals you ate on one-day trips, when
you did not need sleep or rest.

Line 3.—If you use your own car in your
work, you can deduct the cost of the business
use. Enter the cost here after figuring it in Parts

WV, V, and VI, Base the cost on your actual
expenses (such as gas, oil, repairs, deprecia-
tion) or on a mileage rate.

The mileage rate is 20 cents a mile up to
15,000 miles. After that, or for all business
mileage on a fully depreciated car, the rate is
11 cents a mile. A car whose cost’ is being fig-
ured under the mileage rate is considered to
have a useful life of 5 years. If in any year actual
expenses are claimed using a useful life of less
than 5 years, use of the mileage rate after that
shorter useful life will be limited to 11¢ per mile.
(For depreciation, see Publication 463.)

Figure your mileage rate amount and add it to.
the business part of what you spent on the car
for parking fees, tolls, interest, and State and
local taxes (except gasoline tax).

Line 4.—If you were an outside salesperson
with other business expenses, list them on line
4. Examples are selling expenses or expenses
for stationery and stamps. An outside sales-
person does all selling outside the employer's
place of business. A driver-salesperson whose
main duties are service and delivery, such as
delivering bread or milk, is not an outside sales-
person. (For outside salesperson, see Publica-
tion 463.)

Line 5.—Show other business expenses on
line 5 if your employer repaid you for them. If
you were repaid for part of them, show here the
amount you were repaid. Show the rest in Part

Part I.—You can deduct other business ex-
penses only if (a) your employer did not repay
you, and (b) you itemize your deductions on
Schedule A (Form 1040). Report these expenses
here and under Miscellaneous Deductions on
Schedule A. Examples are union or professional
dues and expenses for tools and uniforms. (For
details, see Publication 529.)

You can deduct expenses for business use of
the part of your home that you exclusively and
consistently use for your work. If you are not
self-employed, your working at home must be
for your employer's convenience. (For business
use of home, see Publication 587.)

If you show education expenses in Part | or
Part Il, you must fill out Part III.

Part III.—You can deduct the cost of educa-
tion that helps you keep or improve your skills
for the job you have now. This includes educa-
tion that your employer, the law, or regulations
require you to get in order to keep your job or
your salary. Do not deduct the cost of study
that helps you meet the basic requirements for
your job of helps you get a new job. (For edu-
cation expenses, see Publication 508.)

Part V.—if you trade in a car you used in
business for a new one you also used in busi-
ness, fill out lines 1 through 15. If you paid
cash for the new car or traded in a car not used
in business, fill out only lines 10 through 15.
Refigure the basis for depreciation each year in
the future that your percentage of business use
changes.

PART I.—Employee Business Expenses Deductible in Figuring Adjusted Gross Income on Form 1040, Line 31

1 Fares for airplane, boat, bus, taxicab, train,etc. . 2...

2 Meals and lodging. . . . . .
3 Car expenses (from Part IV, line 21) .
4

Outside salesperson’s expenses (see Part | instructions above) >.

5 Other (see Part | instructions above) p>

Add lines 1 through 5... . .

Employer's payments for these expenses Sif not included on Form W-2. .

6
7
8 Deductible business expenses (subtract line 7 from line 6). Enter here and include on n Form 1040, line 24 .
9

Income from excess business expense payments (subtract line 6 from line 7). Enter here and include on
Form 1040, line 21

PART Il.—Employee Business Expenses that: are Deductible Only if ‘You itemize Deductions 0 on Schedule A (Form 1040)

1 Business expenses not included above (list expense and amount) >

iscellaneous Deductions, Schedule A (Form 1040)... een
PART TH .—Information About Education Expenses Shown in Part | or Part 1

1 Name of educational institution or activity >.

2 Address D> .
3 Did you need this education to meet the basic requirements for your job?. . . . . . «+ s+ + + +L] Yes [J
4 Will this study program qualify you foranewjob?. . 2. 2 6 6 2 ee eee ee ew we ee © PP Yes [J No

5 If your answer to question 3 or 4 is No, explain (1) why you are getting the education
the courses you took and your job. (If you need more space, attach a statement.) >

and (2) what the relationship was between

6 List your main subjects, or describe your educational activity >

Form 2106 (1980)

313-145-2


Form 2106 (1980)

PART iV.—Car Expenses (Use either your actual expenses or the mileage rate)

Carl Car2 Car3
A. Number of months you used car for business during 1980 . months months months
B. Total mileage for months in lineA. . . 1 ee ew miles miles miles
C. Business part of line B mileage. . . . . miles miles miles
Actual Expenses (Include expenses for only the months Shown in vine A, above.)
1 Gasoline, oil, lubrication, etc. © 6 6. 1 ew ee
2 Repairs 2 6 ww ee
3 Tires, supplies, etc. . . . 1 2 ee eee ee
4 Other: (a) Insurance. . 1 1 ee ew eee
(b) Taxes 2. So ee
(c) Tags and licenses ee ee
(d) Interest © 6. we ee ee ee
(e) Miscellaneous. . 6. 2 ee we ee
5 Total (add lines 1 through 4(e)) . o.
6 Business percentage of car use (divide line c by tine B,
above) 2 6 we ee ee % % %
7 Business part of car expense (multiply line 5 by line 6) .
8 Depreciation (from Part VI, column (h)). . . . 6 e
9 Divide line 8by 12 months. . . . . . . . - |
10 Multiply line 9 by line A, above. . . .
11 Total (add line 7 and line 10; then skip to line 19).
Mileage Rate
12 Enter the smaller of (a) 15,000 miles or (b) the combined mileages from lineC, above. . . . . «+ miles
13 Multiply line 12 by 20¢ (11¢ if car is fully depreciated) and enterhere. . 2 2. 1 2 ww ew ee
14 Enter any combined mileage from line C that is over 15,000 miles . . . miles
15 Multiply line 14 by 11¢ and enterhere. . . . . ry
16 Total mileage expense (add lines 13 and 15). . . . sone es
17 Business part of car interest and State and local taxes (except gasoline tax) - ee ey
18 Total (add lines 16 and 17) . : _ _ _-
Summary:
19 Enter amount from line 11 or line 18, whichever you used . ry
20 Parking fees and tolls . . .
21 Total (add lines 19 and 20). Enter | here andi in Part 1, line 3. wee ee
PART V.—Basis for Depreciation of Car Used in Business (See instructions on front)
Trade-in of Old Car: 5 Multiply line 4 by percentage on line
1 (a) Total mileage at trade-in. . . . miles oT
(b) Business mileage. . . . « miles_| 6 Gain or (loss) on previous trade-in. .
(c) Business percentage. . . . . 7 Balance of lines 5 and 6 (subtract gain
(divide line (b) by line (a)). . . % or add (loss)). 2 1. 2 ew ee
2 Purchase price or other basis. . . .
8 Depreciation allowed or allowable .
3 Trade-in allowance. . . . 2 we 9 Gain or (loss) on business part (Sub-
tract line 7 from line 8 for gain; or
4 Difference (subtract line 3 from line 2) . line 8 from line 7 for (loss)). . . .
New Car: 13 Multiply line 12 by the percentage on
10 Purchase price or other basis. . . . line6ofPartIV. . . 6. 2 wwe
11 Estimated salvage value . . . . « 14 Enter gain or (loss) fromline9. . .
12 Difference (subtract line 11 from line 15 Basis for depreciation (Balance of lines
10)... - 13 and 14: subtract gain or add (loss)) .
PART VI. —Car Depreciation
Mnte and mento Tg | Pag ari | AB eta | Piekgn Sem | MURS Tone By] RE
(a) (b) (c) (a) i) (2) ) )

3 US, GOVERNMENT PRINTING OFFICE : 1989—0-313-145,

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