Travel Deductions Are NOW Both Automatic & ?Deemed Substantiated?!
As we approach the coming tax season those in the Trucking Industry are showing significant interest in two recent Tax Court Decisions that have expanded travel deductions for Owners Operators and Employees. Remember Travel is simply being ?away from home? long enough for taxpayers to be released from duty in order to obtain ?necessary rest or sleep?. ! A local haul returning ?home ?in a day will not qualify but longer trips should qualify for these travel deductions.
ALL TRAVEL EXPENSES ARE ?DEEMED SUBSTANTIATED?
My tax office is unique in that I specialize in taxpayers who travel for a living. Travel deductions are broken down into three distinct categories ? Lodging ? Meals ? and Incidental Travel Expenses. As it turns out the Court cases above were the first cases ever to reach the U.S. Tax Court specifically demanding ALL of these meals and incidentals! And it was the Taxpayer who WON! We typically see taxpayers lose between $3000 to $5000 in deductions each year simply because they are not aware of what they are entitled to (regardless of their reimbursement plan).
DIRECT OR INDIRECT MEAL ALLOWANCES MAY NOT BE ENOUGH!
Look at it this way depending upon your city of travel there are meal rates for every city in the continental U.S. My office is currently tracking each of these cities and depending upon your logs and rig locations you are probably entitled to a greater deduction than what you are currently being reimbursed ?
Let?s say your daily meal allowance averages $25 a day. You deliver a haul to a city with a standard rate of $49. If you follow the proper substantiation regulations you are allowed to claim $19 ($49-$25) for each day you remain in that city. In a year that can add up!
BUT THAT?S NOT ALL?
By following the proper IRS procedures additional travel expenses can be claimed with NO RECEIPTS at all! We make sure that truckers are complying with revenue procedures (89-67 ? 2002-63) and IRC 274 AND attaching proper schedules ALL in an effort to ensure THE TRUCKER gets what they are LEGALLY entitled to! Receipts or No Receipts! This applies to Owner-operators Employees and Independent Contractors alike!
Frank M. Gruber CPA
5482 Wilshire Boulevard
Los Angeles CA 90036
Toll Free (866) 607-5600
Phone (310) 675-4340
Fax (310) 246-1532
E-Mail: [email protected]