rom 2106 Employee Business Expenses oe
orm

(Please use Form 3903 to figure moving expense deduction.) 1982
Internal evens Service > Attach to Form 1040.

Social security number Occupation in which expenses were incurred

Employer's address

Your name

Employer's name

Employee Business Expenses Deductible in Figuring Adjusted Gross Income on Form 1040, Line 32

1 Reimbursed and unreimbursed fares for airplane, boat, bus, taxicab, train,etc. . . . . . . 1
2 Reimbursed and unreimbursed expenses for meals and lodging while away from your main place of work. . 2
3 Reimbursed and unreimbursed car expenses from Part Il... . Loe oe [3

4 Reimbursed and unreimbursed outside salesperson’s expenses other than those shown on lines 1, Y
2, and 3 p__. 77
Zi
4

5 Reimbursed expenses other than those shown on lines 1 througsh4. . . . 1. 5 i
6 Addlinesithrough5. . 6 6 6 ee ee ee ee ee soe eee ef BT |___
7 Employer's payments for these expenses only if not included on Form W-: 2.) rs a i
8 If line 6 is more than line 7, subtract line 7 from line 6, Enter here and on Form 1040, line 24. . . {8 —
9 If line 7 is more than line 6, subtract line 6 from line 7. Enter here and on Form 1040, line 7 . 9
Wt Car Expenses (Use either your actual expenses or the mileage rate.)
Carl Car2 Car3
A. Number of months you used car for business during 1982 months months months
B. Total mileage for months in lineA. . 6 6 6 ee ee miles miles miles
C. Business part of line B mileage...» - + + + miles miles miles
‘Actual Expenses (include expenses on lines 1 and 2 only for the months shown in line A, above.)
1 Gasoline, oil, lubrication,etc. . . 2 2 ee ee [2
2Othr. 6. ee 2
3 Total (add linesland2). ......... [3
4 DividelineCbylineB,above. . . . . . e 4 % % %
5 Multiply line 3 by line4. 2 2 6. aa 5
6 Depreciation (based on percentage shown on n line 4). 6
Note: Do not complete line 7 if you use ACRS or 12
months is entered on line A above. Go to line 8.
7 Divide line 6 by 12 months. . . . . . ee + (LZ
8 Multiply line 7 by line A, or enter the amount from line 6
if line 7 was not completed . . . . . «s+ «| 8
9 Section 179 expense deduction (see instructions) . 9
10 Business parking feesandtolls . . . . . . . . |20
11 Total (add lines 5, 8, 9, and 110). Enter here and in Part |,
line 3. . wee ee ed
Mileage Rate
12 Enter the smaller of (a) 15,000 miles or (b) the total mileage (Car 1 + Car 2 + Car 3) from line C, above. . . . |22 miles
13 Multiply line 12 by 20¢ (11¢ if applicable, see instructions) . . . . . . 2... . {33
14 Enter the total mileage, if any (Car 1 + Car 2 + Car 3) from line C that is over 15,000 miles. . . . . . . [24 |
15 Multiply line 14 by 11g andenterhere. 2 2 6 1 1 ee ee eee ee ew ww | BY __
16 Business part of car interest, parking fees, tolls, and State and local taxes (except gasoline tax) . |_16__ —
17 Total (add lines 13, 15, and 16). Enter here and in PartI, line3_. . . . . . . + + + + | 17
[TGR Information About Educational Expenses Shown in Part | or on Schedule A (Form 1040)
1 Did you need this education to meet the basic requirements for your business or profession?. . . . . . . (J) Yes [] No
2 Will this study program qualify you for a new business or profession?. . . . . . . . - «+ + + +P} Yes [] No

Note: If your answer to question 1 or 2 is “Yes,” stop here. You cannot deduct these expenses, even if you do not intend to change
your business or profession.
3 If “No,” list the courses you took and their relationship to your business or profession. >...

For Paperwork Reduction Act Notice, see instructions on back. 363-147-1 Form 2106 (1982)


General Instructions

Paperwork Reduction Act Notice.—We ask for
the information to carry out the Internal Rev-
enue laws of the United States. We need it to
ensure that you are complying with these laws
and to allow us to figure and collect the right
amount of tax. You are required to give us this
information.

Purpose.—Use this form or a similar statement
to show employee business expenses if:

© You were not required to account to your
employer for your expenses; or

@ You were required to account to your em-
ployer for your expenses but did not do so;
or

@ You were required to account to your em-
ployer and you did so, but your expenses
were more than your reimbursement and
you wish to deduct the excess expenses.
For other situations, see Publication 463.

Complete and file Form 2106 if you have
deductible educational expenses. See the in-
structions for Part Ill.

Amounts to Include on Form 2106.—Include
the following kinds of expenses, provided you
paid or incurred them in 1982’ in connection
with services you performed as an employee
during 1982:

a. Reimbursed expenses. These are expenses
you paid or incurred under a reimbursement or
other expense allowance arrangement with your
employer.

A reimbursement or other expense allowance
arrangement exists if you receive a separate
Payment for expenses from your employer or,
if both wages and the reimbursement or allow:
ance are combined in one single payment, the
reimbursement or allowance is specifically iden-
tified, If you are required to pay your own ex-
penses, you do not have a reimbursement or
expense allowance arrangement.

b. Expenses for travel while away from home.
These are expenses you paid or incurred for trav-
el, meals, and lodging while you were away from
home or your main place of work overnight.

¢. Transportation expenses. These are ex-
penses you paid or incurred for transportation
(cab fares, bus fares, etc. and a pro rata share
of the expenses of operating your car) other
than for (1) travel expenses as described in b.
above; or (2) expenses paid or incurred for com-
muting to and from work.

d. Outside salesperson's expenses. These are
any expenses you paid or incurred in soliciting
business for your employer away from your em-
ployer’s place of business. You are not an out-
side salesperson if your duties consist of service
and delivery or if you do any selling at your
employer's place of business.

Also include on Form 2106, line 7, Part |, pay-
ments you received as reimbursement for ex-
penses you paid or incurred if these payments
are not shown on your Form W-2 and you are
otherwise required to file Form 2106,

Amounts Not to Include on Form 2106.—If
you paid or incurred any employee business
expenses other than those listed in a, through
d., report them on Schedule A (Form 1040), line
25 or 26, whichever applies.

Attachments.—if you need more space, attach
additional sheets. Show on each sheet to which
Part of Form 2106 the separate sheet relates.

Publications.-See the following publications
for more information about employee business
expenses and the records you must keep:

© Publication 463, Travel, Entertainment, and
Gift Expenses.

@ Publication 508, Educational Expenses.

@ Publication 529, Miscellaneous Deductions,
© Publication 534, Depreciation.

© Publication 587, Business Use of Your Home.

Specific Instructions

Part 1

Line 2.—Do not deduct the cost of your
meals or lodging on one-day trips when you

did not need sleep or rest. However, you can
deduct on line 1 or line 3, whichever applies,
the transportation expenses you incurred on
these one-day trips.

Line 5.—Complete this line if ALL of the
following apply:

@ You were not an outside salesperson; and

© You paid or incurred business expenses other
than those described on lines 1 through 4;
and

@ You were partially or fully reimbursed for
these expenses. (If you did not receive any
reimbursement, report the expenses on
Schedule A (Form 1040), line 25 or 26,
whichever applies.); and

@ Any reimbursement is shown either on your
Form W~2 or on line 7, Part |, Form 2106.

Enter the following amount on line 5:

@ If you were reimbursed in full, enter the total
expenses.

@ If you were partially reimbursed, enter the
expenses to the extent of the reimbursement.
Enter any excess expenses on Schedule A
(Form 1040), line 25 or 26, whichever ap-
plies. Example: You paid $600 for educa-
tional expenses. Your employer reimbursed
you $200. You would enter $200 on line
5 and $400 on Schedule A (Form 1040).

If you received a partial reimbursement that
was intended to cover all expenses described
on lines 1, 2, 3, and 5, use the formula
in Publication 463 to figure the amount to
enter,

Part Il

Generally, you may use either of two methods
to determine your deductible car expenses for
business purposes. These two methods are:

a. The actual cost of your car expenses (such
as gas, oil, repairs, depreciation, section 179
expense, etc.). OR

b. The standard mileage rate which gives you
a fixed deduction per business mile. DO NOT
use this method if any of the following apply.

@ The car is leased or used for hire; or

@ More than one car is used in your busi-
ness at a time; or

@ You elect to expense deductions for re-
covery property under section 179; or

@ Your car was placed in service before
1/1/81, and you used a method of depre-
ciation other than straight-line in earlier
years; or

@ Your car was placed in service during 1981
and you used ACRS (Accelerated Cost Re-
covery System) on this car last year. In
this Case, you must use actual expenses
for as long as you use this car for busi-
ness purposes.

If you are eligible to use the standard mile-
age rate, you may want to figure your deduction
under both methods and use whichever one
gives you the larger deduction.

Note: If you use the mileage rate, you are
considered to have made an election to exclude
this car from ACRS.

Actual Expenses

Line 2.—Include on this line your actual
expenses for repairs, tires, supplies, insurance,
taxes, tags, licenses, interest, etc.

Line 6.—Do not deduct depreciation in ex-
cess of your basis or if your car is fully depre-
Giated. For more information, see Publication

The method of depreciation you may use de-
pends on when you started using your car for
business purposes (placed the car in service).

Cars placed in service before 1/1/81.—If you
used either straight-line depreciation or ‘the
standard mileage rate in earlier years, you may
use either straight-line depreciation or the
standard mileage rate this year. If you used a
method of depreciation other than straight-line,
continue to use that method. If you want to
change to straight-line depreciation or to an-

‘4 US. GOVERNMENT PRINTING OFFICE : 19%—-O-369-147

other method of depreciation, see Publication
534. You cannot change to the Accelerated
Cost Recovery System (ACRS).

Cars placed in service after 12/31/80.—If you

Placed a car in service after 1980 and you do

not use the standard mileage rate, you must

use one of two methods for figuring deprecia-
tion under ACRS:

@ One ACRS method lets you deduct the follow-
ing percentages of the business cost or
other basis of your car regardless of what
month you placed the car in service—

Ist year—25%
2nd year—38%
3rd year—37%

Example: You bought a new car, without a
trade-in, for $10,000 in September’ 1982, and
used it'60% for business. You did not make
the section 179 election. Your basis for depre-
ciation is $6,000 ($10,000 x 60%). For
1982, your depreciation deduction is $1,500
($6,000 x 25%). If your percentage of busi-
Ness use changes in 1983, you must refigure
your basis for depreciation.

@ The other ACRS method allows you to use a
straight-line method over a recovery period of
3, 5, or 12 years with the half-year convention.

Do not consider salvage value in either of
the ACRS methods,

See Publication 463 for details on how to
figure the deduction under either method and on
how to figure your basis for depreciation if you
traded in your car during 1982 for another car.

Investment Credit—If you placed a car in
service during 1982, see Form 3468, Computa-
tion of Investment Credit, to determine the
amount of investment credit you can take.

Line 9.—You may elect to expense the cost
related to the percentage of business use of
your car in an amount up to $5,000 ($2,500
if you are married filing a separate return).
However, the total amount of section 179 ex:
pense you claim from all sources cannot be
more than $5,000 ($2,500 if you are married
filing _a separate return). Reduce your basis
for figuring depreciation on line 6 by any
amount you elect to expense on line 9, See
Publication 463 for more information.

Mileage Rate

Use 20¢ a mile for the first 15,000 miles
of business use a year.

Use 11¢ a mile for each mile over 15,000
business miles a year. You must also use 11¢
a mile if your car is fully depreciated.

If you use the standard mileage rate to
figure the cost of business use, the car is con-
sidered to have a useful life of 60,000 miles
of business use at the maximum standard mile-
age rate. After 60,000 miles of business use
at the maximum rate, the car is considered to
be fully depreciated. (For details, see Publica-
tion 463.)

Line 16.—Enter the business part of what
you spent for parking, tolls, interest, and State
and local taxes (except gasoline tax). The busi-
ness part of parking and tolls is the amount
you paid or incurred for business purposes.
The business part of interest and State and
local taxes is the total amount for these items
multiplied by the percentage you get when
you divide line C by line B.

Part II

If you show educational expenses in Part |
or on Schedule A (Form 1040), complete Part

You can deduct the cost of education that
helps you keep or improve your skills for the
business or profession you are in now. This
includes education that your employer, the
law, or regulations require you to get in order to
keep your job or your salary in this business
or profession. Do not deduct the cost of study
that helps you meet the basic requirements
for your business or profession or qualifies
you for a new business or profession even if
you don’t intend to change to a new business or
profession. See Publication 508 for more in-
formation on educational expenses.

363-147-1