Per Diem

[TeamCaffee]

From what I have read the Per Diem has once again changed as of October 1st 2009.
$59.00 per day in the states
$65.00 per day in Canada

When this happened before I kept our log book days away from home up to September 30th. Then another set of figures from October 1st to the end of the year. Separating out Canada days and US days.

One of the things I do to make this easier at the end of the year is when I finish a log book I total that book and keep a running total of days out and miles ran on the cover. At the end of the year I have my totals right in front of me ready to write down for our tax accountant. One less thing I have to work on at the end of the year.

 

[Moot]

It is nice to see the per Diem deduction increase. Even better would be the full 100%.

I don't separate Canadian days because when I go to Canada I usually don't stay long. To quote Letzrockexpress: "Yeah, Canada is o.k... It reminds me of my attic. I don't go up there very often but when I do I find things that are kinda cool that I forgot about. I wander around a little bit and then I get cold and come back down."

 

[OntarioVanMan]

I wouldn't split hairs either Moot...I'd just take the lower rate and live with it....I can't see the IRS saying hey you didn't claim enough...

SOME people...and i won't mention names....have a much HIGHER income and probably need all the deductions they can get....

 

[Fkatz]

From what I have read the Per Diem has once again changed as of October 1st 2009.
$59.00 per day in the states
$65.00 per day in Canada

Hey All,

This is definitely the new per diem rates for 2010, but the tax law is quite stanuch on this item.

If you are in the transportation industry you must use the lower rate ( 2009 ) thorughout the year until December 31, 2009, you cannot use both rates.

Quote: Transition Rules

In General, employers, Sole Propreitors, and employees may conitinue to use last years rates for the conintental US for the remainder of 2009 instead of the new GSA rates. However, the taxpayer must consistently use either the old rates or the new rates for the period from Oct 1, 2009 through December 31, 2009, and may not switch back and forth between the two.

The transisition rules for transportation employees, or self employed individuals is strictly monitered and requires a taxpayer to use the federal rates for the first nine months to continue to use those rates until Janulary 1, 2010, whey they can change to the updated transportation industry rates,

IF YOU DO NOT ABIDE BY THIS LAW AND USE THE SPLIT PER DIEM RATES YOUR CHANCE OF BEING AUDITED IS UP TO RED FLAG STATUS. AND THE POSSIBILITY IS INCREASED.

Franklin Katz, ATP ,PA, PB
Frank’s Tax and Business Service
120 York Rd
Kings Mountain, NC 28086-3151
(704) 739-4039
Fax: (704) 739-3934

Providing Professional Accounting Services and Income Tax Preparation

Circular 230 Disclaimer – Any tax advice in this communication (including any attachments) is not intended or written to be used, and cannot be used, by any taxpayer for the purpose of (1) avoiding tax related penalties under the Internal Revenue Code or (2) promoting, marketing or recommending to another party any transaction or tax-related matters addressed herein.