Can I do something about un-reimbursed business expense?

Question

So hubby was on business trip out of country for months. When he heard the company lost law suit and went bankrupt, He came back,no job, no health care, no where to has his reimbursement of the business trip. So the company owe him 10k. What can he do about it? Many thanks. He is in CA.

Answer 1

It depends on the company's bankruptcy status.  He needs to file as a creditor, with documentation that they owe him that money.  He may actually get some of it, since it is consdiered wages.

If not, he can write it off on his taxes.

Answer 2

They can be deducted when he files his 2008 income taxes return.

Answer 3

He can claim it on his taxes as an reimbursed business expense and get a deduction.  If the company claimed bankruptcy, there is no legal recourse against them.

Answer 4

If he has detailed evidence of his unreimbursed expenses, he can have them written off on his taxes against his wages or salary to reduce or eliminate his tax liability...

Answer 5

Sorry for your trouble.  There is tax relief available.  You'll need to file IRS Form 2106.  Here are the instructions:

http://www.irs.gov/pub/irs-pdf/i2106.pdf

They might change a bit for tax year 2008.

Answer 6

I'm sorry to say but your husband becomes an unsecured creditor  and should file a "Proof of Claim" with the trustee. Once the coporate estate is settled he will be prorated along with the other unsecured parties.

It's a tough situation to have to experience. I went through the same thing back in 2001. Lost over $20,000 in commission.