Per diem write off

Discussion in 'Ask An Owner Operator' started by D.Tibbitt, Jul 4, 2020.

  1. feldsforever

    feldsforever Road Train Member

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    In relation to this drivers question.
    What happens if you clam p/d at the end of the year. And the only money your subject to getting back is your per diem amount?
    Such as you owe 12k but have 15k in p/d. Does the 3k get returned?
     
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  3. Farmerbob1

    Farmerbob1 Road Train Member

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    I am not entirely certain what you are asking.

    In the US, if you are legally able to claim perdiem expenses as a taxpayer, you must be an o/o.

    If you are an o/o, you better have more expenses than simply perdiem, LOL. Fuel. Repairs. Operating expenses.

    Employees can no longer take perdiem as a deduction. The only way employees can see a tax benefit from perdiem is if the company they work for pays them a split wage, with some of their income being for perdiem expenses, and the rest being normal wages. The employee would then only pay taxes on the normal wages.
     
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  4. feldsforever

    feldsforever Road Train Member

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    Do the owner ops and owner lease ops. still get the perdiem?
     
  5. Farmerbob1

    Farmerbob1 Road Train Member

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    Yes, business owners can still take perdiem expenses as deductions.
     
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  6. kemosabi49

    kemosabi49 Trucker Forum STAFF Staff Member

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    The meals deduction (per diem) is just that, a deduction. You deduct it from your income and by doing so it lowers your tax obligation. What you stated would be a tax credit that directly reduces you tax, not a deduction.
    Also if that $12k was your only deduction you wouldn't even bother with it as the standard deduction would be higher.
     
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  7. 86scotty

    86scotty Road Train Member

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    Yep ^^. The first time you sit down with a tax guy as an owner you'll learn all kinds of stuff if they're good. How depreciation works, all of the stuff you can legally write off, all the stuff you can't. I was pleasantly surprised both years I've done it. What you have to remember is that though we have to pay a lot of taxes as small business owners (owner ops) the tax code has a lot written in to it to benefit small business owners too. I get legitimate deductions for having an office in my house but I never use it. Still, it's my business office. Stuff I buy for it is a deduction. Tools? Great deduction. So much stuff. And on per diem, the standard deduction is great.
     
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  8. feldsforever

    feldsforever Road Train Member

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