Can someone tell me how to figure my per diem rate for my logs? I was told that I can only claim days I show staying out of the state of Ohio. I am an owner operator leased to a company out of Xenia. I primarily drive in PA, OH, and WV. However, I may spend the night away from home, but not out of the state of Ohio.

Can you tell me what I can claim and what I cannot?

Also, does any one know the per diem rate? I was told it increased.
Thanks!

 

The standard meal allowance is $52/day of which 75% is deductible. You are allowed to claim the allowance for all days (24-hour periods) spent away from your tax home which, as an O/O, is probably your house. For partial days in which you leave or return, you can just count 3/4 of a day or you can prorate the day however you want, so long as you consistently use the same method. So, if you leave at noon on Monday and get home at 0600 Thursday your deduction would be: .75(3.5 days x $52) = $136.50

 

Ok no_worries I need some help with this. This accountant I have doesn't understand what I'm talking about.

So I get the coun't up the days out times $52 then 75% of that, but what happens with the actual expenses.

I spend a lot of money on food so if it's over the per diem rate how do I calcualate that?

As always thanks

 

You spend an average more than $52 a day on food!? :shock:
Than you should record it (receipts...etc), and claim 75% of your actual expenses.

 

Sheesh! Digging up the old stuff :lol: Solo's right, you would keep the receipts and deduct 75%. I would caution you against trying to claim grocery expenses. Restaurants are no problem, but in an audit you'd have a hard time proving that groceries you purchased were solely consumed while on the road. It's only an issue if you're audited, so it's your choice. You must eat like a king on the road :shock: Two of us spend about $100 a week...maybe :lol: Anyway, if you're spending substantially more than $350/week on food then it might be worthwhile to go the actual cost route. Just keep in mind that even if you actually spend $50/week more, you're actual cash savings on your taxes will probably be about $5 per 7 days. Is that worth all the extra hassle of keeping and tabulating all those receipts?

 

Well I figured I'd search before I asked . I don't know how you spend $100 for two. Actually I'm good with money but I don't know how to shop for groceries. I swear you could feed a family of four for a week for cheaper than what I buy.

It's not even that I buy a lot but I'm not cheap with food. I figure no sense in being cheap with food as it will cost you in the end with your health. Kashi and juice alone costs a fortune.

Besides I use to watch my mother run over all over town to save $.10 on a dozen eggs yet she would blow a ton of money on stupid things. It's like watching people in fancy cars line up at a gas station that's $.02 cheaper per gallon than anyone else in town.

I draw my line with the food. I figure if I have to watch prices on my grocery purchases than I need to make more money in life. I shop at Walmart that's good enough.

I don't actually keep receipts for anything, it's all on the charge card. When buying at Walmart I try and separate the food purchases from the "small tools & equipment" stuff.

Anyway thanks for the responses everyone. Also Dejanh, I give up trying to find a better accountant. At least this one listens to me.

Really it doesn't matter what it is, loans, mortgages whatever I always have to do things myself. If you listen to Donald Trump in interview he is always referring to the people around him as very smart. That's how they do it, surround themself with smart people. Beleive me if I could delegate half of the things I want to do my life would be a hell of a lot easier.

Sometimes I swear it's so hard to find good people who know what they are talking about. You wonder how people make it in life.

 

Man this seems too good to be true. I just added up my days out, 131 times $52 is 6812 and 75% of that is $5109. Is this what I can deduct?

Also how does this come into effect with payroll taxes or I don't have to worry about that? I know I just got my W-2 from the company I drove for and they had what I guess was the per diem in one of the boxes.

As it is now, I have no payroll taxes cause she doesn't have me taking any pay. I didn't think you could do that, but she has me showing a loss so I guess no pay flys I guess.

 

That is how you figure your deduction, you got it.

Aren't you set up as a sole proprietor? If so, it's not an issue of whether you "pay" yourself or not. Any money the business makes flows through to the taxpayer. Of course, if you're showing a loss it doesn't matter.

 

I'm set up as an LLC (remember I play the credit game, business is an assett. I have even a DB number ) but she has it flowing through the to my personal.

I hate to pester No_worries but does per diem cover things like soap etc? I know it covers hotel, but somtimes stupid little expenses I just put as travel expense. I figured per diem was food and lodging.

Thanks.