Frank:
Once again the subject of per diem deductions other than the standard meal allownace of $52; US has been addressed.
Please share you comments on the trucker eligibility of the per diem deduction which includes hotels.
Terry and Rene'
FedEx Custom Critical
White Knuckle Division
Terry and Rene,
I know that this in not only for you but for everyone out there.
The per diem works this way
You are entitled to the $ 52.00 US, or $58.00 while in Canada, as a deduction for everyday that you are out on the road, Logged, or proof of pick-up and delivery. from the time you leave your residence, to the time you return. This per diem deduction is for your Meals only. and it is based on 75% of the total for tax year 2007, In 2008, it returns to the maximun of 80%, this is where it was back in 1998 and increased every 2 years by 5% to bring it back to where it now. This goes on line 24 B OF SCHEDULE C, if you use tax software, make sure you find the code for Subject to DOT REGULATIONS. so it CALCULATES AT THE 75% RATE. IF YOU DO YOU RETURN BY HAND MULTIPLY BY 75% OF THE TOTAL YOU COME UP WITH. make sure you add the days correct. meaning if you leave out in the AM after 6 but before 12 noon. you are only entitled to 3/4 of a day. etc. and depending on what time you return.
As far as other deductions are concerned, Actually the only other one concerning truckers are;
Hotels, motels, the full amount is deducted under the travel line, the line above meals and entertainment. Line 24 A OF SCHEDULE C
IF you were to use Publication 1542, that would mean that you would have to take only the days where you stop for the night and use the full per diem that is in the publication and it is subject to only 50% instead of the 75% that a trucker is entitled to. You will be very safe with the explanation above instead of this paragraph. this would concern traveling salesmen, and other employees or independent contractors.
Take the per diem allowance and the hotels separately, you are entitled to it.
Frank
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