[terryandrene]

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.

[Fkatz]

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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[pjjjjj]

Are there any other Canadian Owner/Operators here? I have been searching this morning for information for Canadians pertaining to how meal expenses are handled at tax time. It appears from everything I have read, we are only allowed to claim a per diem amount (which, btw, is less than the USA amount), IF we are an 'employee'. (And even then, we can only claim 50%, vs the USA 80%).

So my question is.. owner/operators of a own 'sole proprietorship', (as opposed to an incorporated company), must submit actual receipts for meals, vs simply claiming the per diem amount? And then, it's only 50% of the actual receipts? And what about those who buy groceries to eat on the road, as opposed to eating out all the time?
Of course, the solution here would be to incorporate, but we haven't done that yet, (we were going to wait until it was worth it, in relation to net income).
Is there a resident tax expert here for the Canadian contingent?

[OntarioVanMan]

Having submitted many a Can tax form for this business...you DO NOT have to submit actual reciepts for meals..and yes it's 50% of the total. Its the same way as the U.S system...just figure out your away days and multipy by the rate....your accountant should be able to do this...I had an old crusty accountant in Hamilton...he's nasty and blunt...but he knows his stuff!

[pjjjjj]

Originally Posted by OntarioVanMan

Having submitted many a Can tax form for this business...you DO NOT have to submit actual reciepts for meals..and yes it's 50% of the total. Its the same way as the U.S system...just figure out your away days and multipy by the rate....your accountant should be able to do this...I had an old crusty accountant in Hamilton...he's nasty and blunt...but he knows his stuff!

We have one in Hamilton also, our's is a bit crusty too... can you message me your guy's name.. I don't know that ours is necessarily experienced in the trucking industry.

[OntarioVanMan]

Pjjjj...you have mail....

[MCBuggyCo]

I have read in this forum that per diem is calculated in 1/4 day increments and that you cannot claim just one day. What is the minimum period you must be out to claim this deduction?

[pjjjjj]

Originally Posted by MCBuggyCo

I have read in this forum that per diem is calculated in 1/4 day increments and that you cannot claim just one day. What is the minimum period you must be out to claim this deduction?

Apparently 24 hours