Trucker Tax Tips & Deductions

Perhaps you missed it the first time. The following is copied directly from Pub. 463:

It couldn't be any clearer.

 

You are right. I have done all I can.

What is your background. I have stated mine.

 

Every time that you have referenced "Standard Meal Allowance," you have conveniently left out the fact that the IRS defines "Standard Meal Allowance" as meals and incidental expenses (M&IE).

BA Accounting
MS Taxation
PhD Accounting

3 years with Coopers & Lybrand
25 years private practice (Tax)
18 years Accounting Professor

 

I have not left it out.

I addressed it by saying it was under the sub heading.

I then showed where it was referred by the IRS as a special meal allowance for transportation workers.

I gave you the description for incidentals and how they were not limited.


At this point, we will just have to say we will not agree and leave it at that.

 

From page 5 of Pub. 463:

It isn't a sub-heading definition. It is the definition for the entire publication.

 

Good info, o will pass it on, thanks. Looks like forming a corp is the only way to get the per diem on lodging.

 

You will be in a problem with related party.


Chapter 6 of the Pub 463.

http://www.irs.gov/publications/p463/ch06.html


Per Diem and Car Allowances

If your employer reimburses you for your expenses using a per diem or a car allowance, you can generally use the allowance as proof for the amount of your expenses. A per diem or car allowance satisfies the adequate accounting requirements for the amount of your expenses only if all the following conditions apply.

• Your employer reasonably limits payments of your expenses to those that are ordinary and necessary in the conduct of the trade or business.
• The allowance is similar in form to and not more than the federal rate (defined later).
• You prove the time (dates), place, and business purpose of your expenses to your employer (as explained in Table 5-1 ) within a reasonable period of time.
• You are not related to your employer (as defined next). If you are related to your employer, you must be able to prove your expenses to the IRS even if you have already adequately accounted to your employer and returned any excess reimbursement.

If the IRS finds that an employer's travel allowance practices are not based on reasonably accurate estimates of travel costs (including recognition of cost differences in different areas for per diem amounts), you will not be considered to have accounted to your employer. In this case, you must be able to prove your expenses to the IRS.

Related to employer. You are related to your employer if:

1. Your employer is your brother or sister, half brother or half sister, spouse, ancestor, or lineal descendant,
2. Your employer is a corporation in which you own, directly or indirectly, more than 10% in value of the outstanding stock, or
3. Certain relationships (such as grantor, fiduciary, or beneficiary) exist between you, a trust, and your employer.

You may be considered to indirectly own stock, for purposes of (2), if you have an interest in a corporation, partnership, estate, or trust that owns the stock or if a member of your family or your partner owns the stock.

 

Any way to get a line on a good tax attorney or trucking tax preparer? This is definitely my weakness!

 

Awesome info...Thank you!

 

I thought we could only get $39 from the $59.. or 75% of m&ie.. is this correct?