owner leases truck then Gordon leases owner

Answers
1. It will depend on the type of lease that he has with the company he is leasing from. Some of these are capitalized leases and others expensed. It depends on the wording and what happens at the end of the lease.

2. He would be an independent contractor. However, the court case ruling in Washington might have an impact here. Is he really an lease or company driver. The difference to the court case is that he had the lease first prior to Gordon.

3. There is no problem with the tax home as long as he meets the IRS rules for tax home. This has been discussed on many other threads.

IRS pub 463 tax home
link http://www.irs.gov/publications/p463/ch01.html#en_US_publink100033754

Factors used to determine tax home. If you do not have a regular or main place of business or work, use the following three factors to determine where your tax home is.

1. You perform part of your business in the area of your main home and use that home for lodging while doing business in the area.
2. You have living expenses at your main home that you duplicate because your business requires you to be away from that home.
3. You have not abandoned the area in which both your historical place of lodging and your claimed main home are located; you have a member or members of your family living at your main home; or you often use that home for lodging.

4. In order to be eligible for the 52.00 per diem, he has to be away from his tax home. A place he maintains, through rent, utilities etc.

 

The 52.00 is for meals while away from the tax home. Since he is not a company driver, he will get the deduction on the Schedule C. Mark the DOT box and it is then limited to 80%.

There is a per diem for hotels, but why would he be in one if he has a sleeper?

 

It involves leasing from the company you are working for.

 

Talk to a bookkeeper from WA who does trucks.

 

See post 4