I think I answerd this question in a direct e-mail from you, but I will anwser for all to see.
The Per Diem covers only Meals plus any item that is attached to it including tips.
the Per diem is $41US and 46 Canada, for the whole year if you were in this business prior to Oct 1, 2005
If you started after Oct 1, then the higher per diem is available to you of $52 & $58 respectively.
This is subject to 70% of the total that is deductiable
The new PER DIEM FOR 2006 WHICH STARTED ON JANUARY 1ST IS THE NEW HIGHER RATE OF THE $52.00 US AND $58.00 CANADA AND IS SUBJECT TO 75% AT THE END OF THE YEAR. tHE PERCENTAGE HAS BEEN RAISED TO THE 75% FOR TAX YEARS 2006 AND 2007, FOR 2008 IT IS BACK TO WHERE IT WAS IN THE FIRST PLACE PRIOR TO 1998 OF 80%, UNLESS THAT IS CHANGED AGAIN.
FRANK
