Quote:
Originally Posted by strawberryrhubarbpie
But if a company pays me a per diem then I can't claim this on my taxes, right?
|
It depends. Any amount that they pay you for per diem that is NOT figured into your taxable wages cannot be claimed by you as a deduction. For example, my first company paid me 7 cpm as per diem and it was not reflected in my taxable wages on my W-2. This is one of the "acceptable practices" that the IRS allows. So, I paid taxes on the rest of my wages, and claimed no deduction at all for per diem. My company now pays me $30 per day as per diem and does not include it in my taxable wages. However, I can deduct an additional $29 per day FROM my taxable wages. [Actually, I believe my accountant shows the per diem paid as additional income, THEN deducts the total of $59 per day.]
I'm no tax accountant, but I did say I'd weigh in on this. Here's a few things I think I understand:
1) If your truck has a sleeper, you cannot claim motel expenses unless your truck is in the garage. That's why it's good to get your dispatcher to pay for motel rooms whenever you can get him to. If he pays for it, or reimburses you for it, you can't claim it as a deduction. I he provides you a truck with a sleeper and YOU decide to get a motel room.... it's on you.
2) The 85% or 50% rules don't really apply to us because the standard per diem amount will almost always be a higher amount. NONE of us can eat $70 - $120 or more of food a day! And you would have to do it every day to break even cuz whatever method you use, you have to use for the entire year. These rates are for salesmen who treat clients to expensive dinners and are designed to cut down on the extravagances of "gentlemen's clubs" and stuff.
3) The standard deduction is better than the individual location method for many reasons, not the least of which is, that the rates in certain areas are ONLY higher when you are deducting motel rates.
Now... here is the IRS reg that pertains:
Publication 463 (2010), Travel, Entertainment, Gift, and Car Expenses
Scroll down about halfway down the page and find the bold heading that says
special rate for transportation workers.
Here is the text:
Quote:
Special rate for transportation workers. You can use a special standard meal allowance if you work in the transportation industry. You are in the transportation industry if your work: - Directly involves moving people or goods by airplane, barge, bus, ship, train, or truck, and
- Regularly requires you to travel away from home and, during any single trip, usually involves travel to areas eligible for different standard meal allowance rates.
If this applies to you, you can claim a standard meal allowance of $59 a day ($65 for travel outside the continental United States). Using the special rate for transportation workers eliminates the need for you to determine the standard meal allowance for every area where you stop for sleep or rest. If you choose to use the special rate for any trip, you must use the special rate (and not use the regular standard meal allowance rates) for all trips you take that year.
Travel for days you depart and return. For both the day you depart for and the day you return from a business trip, you must prorate the standard meal allowance (figure a reduced amount for each day). You can do so by one of two methods. - Method 1: You can claim [SUP]3[/SUP]/[SUB]4[/SUB] of the standard meal allowance.
- Method 2: You can prorate using any method that you consistently apply and that is in accordance with reasonable business practice.
Example.
Jen is employed in New Orleans as a convention planner. In March, her employer sent her on a 3-day trip to Washington, DC, to attend a planning seminar. She left her home in New Orleans at 10 a.m. on Wednesday and arrived in Washington, DC, at 5:30 p.m. After spending two nights there, she flew back to New Orleans on Friday and arrived back home at 8:00 p.m. Jen's employer gave her a flat amount to cover her expenses and included it with her wages.
Under Method 1, Jen can claim 2½ days of the standard meal allowance for Washington, DC: [SUP]3[/SUP]/[SUB]4[/SUB] of the daily rate for Wednesday and Friday (the days she departed and returned), and the full daily rate for Thursday.
Under Method 2, Jen could also use any method that she applies consistently and that is in accordance with reasonable business practice. For example, she could claim 3 days of the standard meal allowance even though a federal employee would have to use Method 1 and be limited to only 2½ days.
|
Pay close attention to the section on departure and return dates and read the example of JEN. Not sure why they used this since she is not a trucker, but... the important part is that she/we is/are allowed to use method 2 whereas government employees are not. (remember, these rules are mostly written for gov't employees.)
It clearly states that under method 2, we can take the full $59 rate for all days that we are on the road. (I would think this would only apply if SOME meal was consumed, or in our case.... SOME part of a S/Berth or off-duty break was required.) By using the $59 (prorated/standard) rate, you are compensating for both the higher costs of meals in some areas, AND the "partial days."
So, IMHO, if you leave at 10 p.m. on day one, you probably shouldn't count that day. However, (and this is where split logging comes in handy,) IF you take even a 2 hour break for dinner and/or start a sleeper or off duty break BEFORE midnight.... I'd say you can take the whole $59 for that day.
Jen only spent two nights in a motel getting rest, but she had to EAT all three days. And this publication clearly shows that she can take the full rate for all three days (under method 2.)
There is another pertinent reg, #1452 I think it is, and I've read some stuff about "not being allowed if you return to your home," but... as I understand it, if you have to take an HOS break at any time during that day, you can claim the whole day.
I drive a dedicated route and get home every night, but because I'm a member of a team and have to SLEEP during that day while on the road, (as well as eating,) I am allowed to take the FULL per diem deduction for every day I work.
My advice to all is this: Take the full $59 deduction for every day you have a log sheet for as long as it includes a full 2 hr break or any part of a sleeper or 10 hr off duty break and take your chances against a one-in-a-milion tax audit! Worst that can happen is that they disallow a FEW days which will cost you a few dollars in additional taxes. It will be much less than the money you left on the table by claiming only 3/4 of the rate for all departure and return dates!
I also suggest you print a copy of the reg I linked for you, and IF you ever get audited... ask the auditor to explain why "my" interpretation is not substantiated therein. I'll bet he can't.
Hobo
