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You cut yourself a cheque every 2 weeks for $52 X amount of days on road.
That cheque is tax free, as long as you have backing documentation.
Then, as the driver, you claim that income on your personal tax return and offset it with the per-diem deduction (which is 75% of the $52), thereby negate anything you could have saved in taxes.Originally Posted by allan5oh
You set up per diem as president of said corporation to pay yourself X amount per day(I think max is $52 in the US).You cut yourself a cheque every 2 weeks for $52 X amount of days on road.
That cheque is tax free, as long as you have backing documentation.
Example: You are out 10 days. Your corporation pays you $520 in per-diem. At the end of the year, on your personal tax return, you claim that $520 as income (yes, you have to claim untaxed income on your return), and offset it with the $390 in per-diem deduction you can legally take (75% of the $520). You then have to pay tax on the remaining $130. You gained nothing, and you lost nothing. Being a corporation didn't save you a dime.