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RE: per diem sorry
frank,i worked last year for a month,ran a log book.i was a contractor,is my per diem also $52 a day?my accountant has no clue about this(per diem)amount.
wv beachbum
[b]
Beachbum,
Thats because he has no idea about the trucking industry, but the $52.00 per day is correct. but you cannot take the whole amount, if you were out 30 days, the amount is $1,560.00 x 75%= $ 1,179.00 would be the deduction that he uses on line 24 of your Sch C.
If he is filling out the return manually then he has to type on line 24(SUB TO DOT REGS $1560 @ 75%)Meals & entertainment and put the amount above on the correct line ($1,179.) which is the net.
If he is using a professional tax software, and there is a Box on the top of the fill out form, between where he puts, T,S,or J and the State, if he does a control or shift ? on that box it might say Sub to DOT Regulations he highlights that and then he put in the actual amount on line 24. and then the program will figure the correct amount when calculated.
if you were a company driver on line 5b form 2106. it states subject to DOT regulations,and put in the full amount and then later on the form it states multiply by 75% and enter on that line the 1179. then you would not be able to take it due to the carryover to SCH A line 21 and is subject to 2% in the calculations, it must be added to the balance of the itemized deduction that you can take, Mortgage interest, real estate taxes, property tax, Medical expenses,also sub to a limitation (7.5 % of your AGI, Charitable contributions, and other deductions that are on that form. and it adds up to or above the standard deductions. then the per diem will be allowed.
If there any additional information that he would needs have him call me at 704-739-4039 or he can call any of the professional tax associations that he belongs to and ask them. if he does not beleive me.
Franklin Katz, ATP
Franks Tax & Business Service
226 S. Cherokee St
Kings Mountain, NC 28086
704-739-4039
704-739-3934 Fax
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