Bill Brown <brownwp[at]longwood.edu> wrote:

- quote -

Nothing shields an individual from liability for torts
committed by that individual.

If a corp. is set up, it shields the owner's outside assets
from torts committed by an employee.

Seth

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"Tom Ritter" <tritter[at]nospam.com> wrote:

- quote -

Need to have your corp reimberse you

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If the expenses were actually disallowed because they were,
as you stated "unreimbursed employee expenses." then it was
because the nurse was an employee of her company (the one
that she incorporated) and she failed to set up a
reimbursement plan.

Otherwise, I suspect the expenses may have been disallowed
because the nurse failed to keep a contemporary mileage log
book and/or she also included commuting expenses.

I think your wife is doing it correctly.

- quote -


"Two places of work. If you work at two places in one day, whether or
not for the same employer, you can deduct the expense of getting from
one workplace to the other. However, if for some personal reason you do
not go directly from one location to the other, you cannot deduct more
than the amount it would have cost you to go directly from the first
location to the second.

Transportation expenses you have in going between home and a
part-time job on a day off from your main job are commuting
expenses. You cannot deduct them...

"Commuting expenses. You cannot deduct the costs of taking
a bus, trolley, subway, or taxi, or of driving a car between
your home and your main or regular place of work. These
costs are personal commuting expenses. You cannot deduct
commuting expenses no matter how far your home is from your
regular place of work. You cannot deduct commuting expenses
even if you work during the commuting trip."

Rudy
www.LizcanoTaxServicesLLC.com

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Tom Ritter wrote:

- quote -

First, I am not a lawyer but I have heard more than one
lawyer say that a corporation will NOT shield a 100%
shareholder/sole employee from any liability whatsoever,
certainly not from liablity for torts committed by a
professional (such as a nurse or CPA).

Second, if a corporate form is used, the corporation should
set up an accountable reimbursement plan for its employee
since that employee will no longer be using Schedule C.

Good luck.

Bill

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

My wife is a self-employed Registered Nurse who does in-home
rehab services for post-surgery patients. Patients are
assigned to her by three different home health care
agencies. She is responsible for scheduling initial and
follow-up appointments and preparing all reports.

Her day starts by driving less than a mile to the agency
from whome she receives the most assignments. She goes
there to see if any nurses will not be able to make any of
their appointments for that day (usually difficult patients
other nurses do not want to continue). She also does any
rescheduling from their office.

She is usually able to arrange her last appointment of the
day to be within 2 to 4 miles from home. She is a
meticulous recordkeeper. She takes a transportaion
deduction on Schedule C. She had a CPA do our taxes some
years ago and he said she was doing everything right.

The agencies started advising the Nurses to incorporate to
minimize liability exposure. My wife was considering doing
that. Then a nurse who had incorporated got audited and a
large portion of her transportation expenses were denied
because they were declared unreimburse employee expenses.

Does this make sense to any of you? Or do you suspect there
was some other reason?

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >