Replies

1. 
   Piffin | Sep 29, 2002 11:58pm | #1

   I didn't realize there was a standard amout allowed. I might do better with that sometimes. I always put it in travel and entertainmet by actual with their percentage allowed.

   You might get more accurate answers if you staed whether you are employee, self emp. sole prop. or corp.

   .

   Excellence is its own reward!

1. 
   DaveMason2 | Sep 30, 2002 12:29am | #2

   sole proprietor.

     I'm hoping it was on the level. I only used him one year just to make sure that I was doing my taxes right. Before that I was totaling up my receipts and putting it in meals and ent.

    The list he had was for each individual city. I've asked him where he got the list from but he won't tell me.

    The deduction was added at the end of my tax forms as an attachment.

                                                                                                     Dave

1. 
   Piffin | Sep 30, 2002 12:41am | #3

   Actually, I'm not sure without looking it up, but I think that travel is separate from the meals and entertainment.

   Travel is a legitamate part of cost of goods. Totally deductable if you need to make the trip to do the job.

   Meals and ent is subject to the percentage because you have to eat anyway and ent. is supposedly to impress clients for a sale or to motivate emps which is less directly connected to the production of income so less deductable.

   take it for what it's worth..

   Excellence is its own reward!

1. 
   bobl | Sep 30, 2002 01:17am | #4

   I believe eating while away on a trip (for yourself) is different than taking a customer out to eat.

   this is only a guess but he may have been refering to the GSA per diem rates http://www.policyworks.gov/org/main/mt/homepage/mtt/perdiem/travel.shtml

   bobl          Volo Non Voleo      Joe's cheat sheet

   Edited 9/29/2002 6:22:21 PM ET by bobl

1. 
   Piffin | Sep 30, 2002 01:47am | #5

   that's what I was trying to say - good site..

   Excellence is its own reward!

2. 
   bobl | Sep 30, 2002 02:08am | #7

   http://www.irs.gov/pub/irs-pdf/p463.pdf

   see pg 6 regarding standard meal allowencesbobl          Volo Non Voleo      Joe's cheat sheet

3. 
   DaveMason2 | Sep 30, 2002 05:16am | #8

   Thanks guys I think I'm on the right track now.

     Dave , I have been working in Anchor Point and Portage. Not as warm as Maui but I did have a good view of the beach. :-)

   Dave

2. 
   DavidThomas | Sep 30, 2002 02:01am | #6

   Depending on your type of business and your company policies, a very nice way to reimburse yourself is to submit an expense account for your actual out-of-pocket expenses (building supplies, airline tickets, etc,) and for the allowed per diem for the area you are in. For instance, $299 airfare to get there, $147 car rental, $35 gasoline, and $XX/day per diem. Where $XX is an amount from the table referenced above. It varies from about $90 to $220 / day (meals + lodging) depending on the local costs.

   This is to your advantage if you spend less than average (flea-bag motel, grocery store for food, stay with friends, sleep in the truck, whatever). If you spend more than average, just submit the actual (higher) expenses.

   Your reimbursed expenses aren't taxed. They don't add to your income.

   The really cool thing is that all living expenses are covered if the majority of workdays are work. Travel days don't count. So - imagine a builder's conference in Hawaii:

   Friday - travel - doesn't count

   Saturday - non-work day, doesn't count - go play

   Sunday - non-work day, doesn't count - go play

   Monday - conference - legitimate business work day

   Tuesday - conference - legitimate business work day

   Wednesday - conference - legitimate business work day

   Thursday - work day but you play

   Friday - work day but you play

   Saturday - play

   Sunday - play

   Monday -travel home

   It all counts. 3/5 of the work days (a majority) were spent working. Weekends don't count, travel days don't count. You can reimburse yourself for 10 nights lodging and 11 days of meals. At the actual cost or the allowed per diem, which ever is greater. Even though there were only 3 work days involved. Felt a little weird doing it, but my tax guy walked me through it and explained it was my patriotic duty to have a deductible 8 days of vacation in Maui last January.

   This is an extreme example of how much play time one can get. But many conferences are structured with this in mind. At least the medical ones always are and sometimes the engineering ones are.

   David Thomas   Overlooking Cook Inlet in Kenai, Alaska