Is the monthly fees deductible for satellite radios

I asked my mother in law, she does our taxes and is the financial person at her company, she said she highly doubts it, its not a necessity, I think the IRS would laugh if they saw that on our tax forms, I wish we could I would be the first one in line, I have sirrius, I don't know how I ever did without it!!!

The test for taking a work related tax deduction is: Was it an ordinary and or necessary expense incurred for my job; ie did I incur the expense because of my job, and if it were not for the job, I would not have the expense. Some folks may not think Satellite radio is a work related expense, but if you get weather and road condition data via the subscription and you don't have the Sattelite radio in your personal vehicle, then I think you can make a solid case for the radio and subscription. Now if there is a personal use element to the radio, you should prorate it. Make sure you can justify and substantiate the work related expense of any deduction you take. If you do take a deduction for cell phone, internet, or satellite radio-make sure you only claim the work related part of the expense. You can enter these kinds of expenses in the itemized expenses tab of the Per Diem Calculator at www.PDCal.com

Good question.

-Marc CFP®, EA
Per Diem Reports

Thanks Tax guy I have gone around and around about this with my tax preparer and she flat out refuses to let me deduct this. I think maybe I'll try the prorate angle this time with her and see what she says. I claim a portion of my cellphone bill inn this manner and haven't had any trouble with it yet.

Well, if you can't convine the tax pro, you may need to strengthen your position, show or explain what portion of the xm/sirius subscription is ordinary and or necessary to your job. Emphasize traffic, road conditions, weather info and the saftey aspects of this. Also, if you say to include it and you have made the case and the preparer still refuses, tell them to disclose it on form 8275.
If you enter only the work related portion, say 50% and can cite the safety & work related aspects of the service, the IRS won't argue.

You can enter the XM/Sirius subscription in the itemized expenses tab of the Per Diem & Travel Expense Calculator (it is to the right of the December Tab).

If you fill out the Per Diem Calculator completely, you'll be amazed at how much it will save you. Your tax pro will want to see the complete report which I sign and include my license number.

You'll get the deduction number for free up front with no gimmicks, just ask the tax pro how much it saves you. Then you can decide if you want to purchase the report. It's only $59.95, but the final answer is free, you only buy the complete report if you want it to back up the deduction number. The average user saves between $800-$1,500.

it costs nothing to load up your travel and expense history. And when you give your tax pro a written report, they are more likely to take the info you give them.

-Marc CFP®, EA
Per Diem Reports

Not knowing what the Sirrius costs per month - you know you are allotted $3 per day for entertainment while on the road out of your daily per diem.

Linda
Tax Lady