Groceries

[OntarioVanMan]

I understand and accept the thinking about the food issue..BUT I now question the legality of taking the per diem and claiming a motel room for the same night....past practice this has been allowed ( or overlooked) I would think if you took a motel room you'd have to forgo the per diem claim for that occasion??

 

[dieseldiva]

I understand and accept the thinking about the food issue..BUT I now question the legality of taking the per diem and claiming a motel room for the same night....past practice this has been allowed ( or overlooked) I would think if you took a motel room you'd have to forgo the per diem claim for that occasion??

Isn't the real question then: what EXACTLY is included in the per diem, is it food only like some of us believe?? Does it include lodging?? What's the real deal and where is Frank?? LOL
(not that he would have anything else to do this time of year)

 

[OntarioVanMan]

Isn't the real question then: what EXACTLY is included in the per diem, is it food only like some of us believe?? Does it include lodging?? What's the real deal and where is Frank?? LOL
(not that he would have anything else to do this time of year)

Now ya see we've had different people post about what thier "accountant told them" and it's been all different answers..so to say Franks would be correct would be to err as well...Terrys answer about getting an "official ruling" from the IRS makes more sense...as in go directly to the horses mouth.

 

[dieseldiva]

Now ya see we've had different people post about what thier "accountant told them" and it's been all different answers..so to say Franks would be correct would be to err as well...Terrys answer about getting an "official ruling" from the IRS makes more sense...as in go directly to the horses mouth.

True enough but Frank can quote you "chapter and verse" from the "Big Book" written by the ever-knowing, ever-caring IRS!!!!

 

[terryandrene]

OVM: Part of what I said about DVDs and cosmetics was tongue-in-cheek. The references some folks make to "meal per diem" that applies to us is officially called the Standard Meal Allowance for Transportation Workers. The deduction for 2007 is 75% of $52 per day ($58 for Canada travels) My belief is that OTR drivers may not use the per diem deduction which includes motel/hotels but you may deduct actual hotel expenses while on the road.

The bottom line is you, particularly, should get advice and assistance from a tax preparer that has knowledge and experience with the trucking industry.

 

[TeamCaffee]

I sent an email to Frank and asked if I could post his reply and he said yes:

Legally you can not take the movies and DVD's and any other entertainment deduction, but the only time that it will be disallowed would be when you are audited. and it is basically a minor deduction. you can only take 50% of the actual cost and it has to be listed that way in PART V of Sch C.
Showers and laundry are deductible. the laundry for it to be deductible you must put on a piece of paper

date, location(truckStop), City, State and amount spent for washers and dryers due to you will not get a receipt for it

Showers, if you fill your tanks with 50 gals or more you would normally get a 1/2 or full shower depending on truck stop. If you stop at another where you do not fuel, and pay for a shower it is deductible.

FRank

I also received this from Frank:

The per Diem is a reimbursement for FOOD only and pertain to you for every day that you are on the road, this per diem is based on 1/4 days, midnight to 6AM 6AM to Noon, Noon to 6PM and 6 PM to midnight.

EXAMPLE: It Monday, You are home, you call in to put yourself back in service, they call you at 3 PM that they have a load for you to pick up. That means that you start your Per Diem at about 3:30 PM by leaving your home. Once you leave, you do not return home for 3 weeks. So lets say you come home at 11AM Friday 21 days later

The Per Diem would break down this way
For Monday the day you leave. you will receive 3/4 of 1 day, then 19 full days and 1/2 day on the Friday
you return. So your total for this period is 20 1/4 days for allowable per diem deduction.

That is the way the per diem is figured, Plus if you go into Canada, it the time you leave Customs going in, and the time you leave Customs coming out. those days are figured separately

Your Per Deim is for the days in the US $52.00 and In Canada $58.00 per day

This is subject to 75% of the total as the actual deduction


Frank

 

[TeamCaffee]

I have found another example of why this issue is so confusing and why you need a good truck accountant. Even with the truck accountants they all look at the issues differently. I am taking a course from ATBS called CABS Course of Advanced Business Standards and this is a quote from two of the chapters on deductions:

Entertainment: This expense is deductible only if you entertain a business associate such as a fleet manager, another driver or a shipping clerk. This deduction is NOT for you own personal entertainment such as movies, books, or video rentals, not related to your business.

Record Keeping: Your log book provides data as to the number of days you were away from home which is necessary to support your PerDiem allowance. This means that receipts for meals and showers do not need to be kept since your per diem covers these expenses.

This goes to show that each accountant looks at the rules different and also each driver looks at the rules different. Which to me means each IRS agent is going to look at all the rules different.

I think we will continue to deduct what we are comfortable with.

 

[Fkatz]

Hi All,

It seems that everyone has there own opinion on what is and what is not deductible as far as the PER DIEM is concerned.

The Per Diem Deduction is for any type of food only, You do not need reciepts, But you must either have proof that you were on the road, or copies of Bills of Lading with a trip record, and/ log books.

As far as showers are concerned, Only the showers that you actually paid for are deductible. Not the ones you get for filling your fuel tanks or using any of the fuel cards.

As fars as entertainment expense, over the years we have gotten away with taking
audio books, DVD's, VHS'S, Movies gone to, Playing Golf, or gone to Amusement parks or sporting events. and other things while on Layover. Truthfully they are not Deductible on you tax return. The IRS has not enforced this deduction, but Lately with all the audits that they plan on doing this year on "Self-employed business persons" they will disallow any that are claimed. if you file a Sch C, it must me put in Part V Other expenses, and Listed on 1 line: Enterainment, The Amount and you must put Subject to 50%, and then enter the total in the corresponding line. You cannot take the full amount. and it cannot be a part of the amount on line 24 Meals and entertainment.

If there are anyother questions please do not hesitate to ask, We will try and answer them within 72 hours.

Frank

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.

 

[mypie]

OK, so this may be redundant, but I don't really care - I'd rather have a clear understanding of what I can and cannot do.

First, if you are driving team, and you go out to dinner or buy a movie to watch on layover and "you talk business with your team member" - can't you claim it? I mean, just the same as if you were taking out a client/customer/business associate?

Now, I'm new to this - so I need all the help I can get (in more ways than one). As I understand it, there is a $52/diem that you can deduct. Is that $52/diem per team member? So, as a H/W team it would be $104? And, that per diem includes meals/groceries, hotels/motels, showers and laundry - Right?

If you choose to exclude the per diem for just 1 day, what was the percentage of the deduction? But, what you're saying is you can mix and match (per diem and non-per diem) on an as needed basis throughout the year?

I'm so confused?

 

[mypie]

I'm sorry about the double-post, but I had an after-thought (brain fart). My husband takes medication for high blood pressure - which is a DOT requirement. Because it is a DOT requirement, isn't it deductible?

My husband was looking up tax information on the internet and found an article that said that if you are over-weight and you get fined for it, that is tax deductible as well because you are not responsible for loading it? Is that correct?

 

[Fkatz]

It seems that there is much confusion over what and what not can be deducted by truck drivers.

As I said in earlier posts the Per Diem is a reimbursement for FOOD ONLY, and does not pertain to Showers, Hotels, laundry, or anything else. it is only for food.

Hotels, Motels, Showers, laundry, and all the other items you can get from e-mailing me direct ly at [[email protected]] and requesting a deductible listing, its free.

For those of you who have not completed your tax returns the per Diem is $52.00 US and $58.00 Canada. The Amount has not changed for 2008 and if it will. the change will not take place until Oct 1, 2008. But the percentage has changed to 80% for this year.

The only showers that you can take are the one's that you actually pay for. you cannot take the freebees that you get when you buy fuel and use the shower ticket or a rewards fuel card.

Entertainment, legally the only entertainment that you can take is if you take your Owner, dispatcher, broker, or anyone connected to getting you income can be taken as a deduction, and you recieve only 50 % of the total.

Driver have been taking this deduction for years including me when I was driving myself, I have never been audited.

But in only 2 audit that my cleints have had they disallowed the entertainment deduction, on both.

If you have any questions please do not hesitate to ask,

Franklin Katz, ATP, PA

 

[Fkatz]

I forgot to mention about the H/W team operation, Starting with this years tax return (2007) if you use a Schedule C, it may be file Jointly and if there is a profit both will pay into SS. this way it will not leave your spouse high and dry with no Self Employment tax paid in. you enter all the expense on the one form, You do not have to get 2 1099's separating the income and entering it on 2 separate forms.


Frank