Will we lose per diem

Good point Scooter. They'll likely be no worse off.
My per diem deduction for for 2017 is going to be $11,831.
So it wouldn't make any difference to me.
I haven't itemized for 8 or 9 years now any way because my kids are grown and my house is paid off.
However I am an S Corp and the per diem is deducted against the business.

 

I can't speak to the average driver. That is fairly ambiguous.

I can say that those of us who stay out months at a time are thankful the per diem can still be itemized for transportation workers.

 

The point is, is OTR drivers had this humongous tax deduction that local drivers and factory workers didn’t.
And it kind of was a Thank You for being away from home, for eating every meal out of a can or a restaurant.
And it was a HUGE tax deduction too.
So now basically everyone, factory, local drivers and OTR drivers will all pay the same in Federal taxes.
But some would say that’s fair. At least the top income earners will get a giant humongous tax reduction.

 

Yeah, I'm in the same boat. I file as an S Corp on the business and take the per diem there. In addition, our kids are all grown up now too.

Our mortage interest & property tax deduction was only $9500 this year, so schedule A isn't necessary.

However, I can see how the standard deduction bumping to 24k this year is going to be beneficial from a tax liability position.

 

Take your per diem up front.
The best idea would be to eliminate deductions, exemptions and the whole #### mess and have everyone pay the same rate.

 

It's been years since I listened to him, but check out his "signature truck" thread.

I looked at the advice put up here by folks like @TripleSix , @Ridgeline , and many others and realized that Rutherford doesn't know more than any other true professional out here, he's just found a way to monetize it. He shills whatever products he can get paid for, and to me it doesn't feel like he knows any more than any youtuber,

 

I haven't listened to him for a few years either. I think he has some great information that's very helpful for new owner operators. I know it helped me so I give him his due.
I enjoy hearing other points of view. I'm 61 but still love to learn new things.

 

See evidence A: turbo 3000d.

 

The central point has been made several times in this thread. Yes, you can still deduct your Meals and Incidental Expenses (M&IE or "Per Diem") on your schedule A.

The issue is that the standard deduction is so large that even if you have a $20,000 per diem deduction, it is WORTH absolutely NOTHING, since everybody gets $24,000 already (married filing jointly). If you are single, you have to stay out more than about 200 days before it exceeds the $12K deduction you already get. As a deduction on schedule A, M&IE is worth nothing or very, very little, unless you have a huge mortgage and property taxes. And I mean HUGE.

However, if you take it "through the company", either as an O/O on your pay check or as a company driver on you pay check...... you now get the SWEET M&IE deduction PLUS you get the SWEET $24,000 standard deduction.

By moving the deduction to the company, an OTR driver making $60K can reduce his income by $24,000 PLUS M&IE of $10,000 or more. By combining the two, his taxable income is now only $26,000. Oh, YEAH!

There are some that say that taking M&IE in lieu of wages is a bad idea because it reduces income so you qualify for less of a mortgage, etc. I very, VERY strongly disagree with that. Taking M&IE expenses lets you keep an ADDITIONAL 7.5% of your wages out of the governments hands. So you save 7.5% plus your income tax rate. 7.5% + 12% on that portion saved or invested goes a long way to not NEEDING loans, or at least much smaller loans. The same goes for the reduced other government "benefits". I am a much better manager of my money than the government, and I will get much more out of my money by investing it than by giving it to the government in the hope they'll give some of it back as social security, etc.

 

And to think we have that scumbag from New York to thank for all this confusion. Making America greater by taking money from poor and middle class to give to the rich. A reverse Robin Hood if you will.