Per diem and Sole proprieter

my source is I am a sole proprietor and have claimed per diem every year. never been audited . my mother in law does my taxes, she is a tax preparer.

I don't think your cuz knows the truck biz, he could easily find it. I claimed 300 days of per diem this year, backed up by log books.

 

IRS code allows us to deduct 80% of $59 for every day that we are out on the road. I have done if for years and have been a sole proprietor for years. your cuz is all wet.

 

I'm a sole prop and have it done with my accountant, and even took it as company driver.

 

So long as you are under DOT HOS rules, its $59 every day you're out - on form 2106 I think.

Most CPA's don't get this deep into our side of things.

Sole prop, co driver, don't matter.

 

Per Diem has nothing to do with your business status. It's whether you, the driver, is away from home overnight because of work. That's it.

 

Here's a question to throw in the mix.. do any of you sole proprietor's not own your home? Does someone live at that home, rented or bought?

The reason I am asking is because I have been made aware of some trouble I may run into down the road, as a sole proprietor/independent contractor. I have no house but, I thought I just needed an address, I can get that with no problem. What are the odds of me getting audited on the grounds that my address is not my " Tax Home"?

 

Per diem on a sole proprietorship is claimed on meals section of the Schedule c with the DOT box checked which allows for the 80% rate.

If the cousin says no, time to not have them as a tax consultant. If you want the line number, let me know.

 

Company driver is an itemized deduction and is on the 2106 and gets limited by 2%.

The sole proprietor gets a dollar for dollar deduction of the 80% on schedule c.