Per Diem

[S T]

Okay, my brains just went out the window.

Have a client that is a truck driver. Based out of Los Angeles, Ca. On a weekly basis will drive from LA to Sacramento, LA to Charlotte, NC, LA to PA, etc. Drives 5-6 days home about 1.5 days (clock time).

What per diem rate do we use?? Isn't it Hi/Low method? or option would be to track all of the stops and take each city? (providing they can produce the log of course) then use the DOT percentage.

Thanks
Sandy

[RLymanC]

PerDiem

I would use the $41.00 dollar rate and take the 70% deduction.

[S T]

That was my thought

Well that was my thought, to use the $41 at 70%, but then his co driver went and had his taxes done, and the preparer used the LA (as in Los Angeles) rate of $51, based on the fact that the drivers start and stop is LA. They are only in LA to pickup the truck and drop it off, not much than 1-2 hour layover in between runs. Rest of their time is outside of Calif.

Sandy

[Ken]

per diem

It really makes my blood boil when tax preparers try to bend the rules just to make them selves look good and their clients get a bigger refund. If the guy did most of his driving in LA that would be one thing, but he is driving all over the country so to use the higher LA per diem is absolutly not right.

[Gretel]

If all driving was done in LA he would get nothing since this is his tax home. My blood boils too, if I here about ridiculous deductions. I wished IRS would do more audits in this area.

Sandy, also keep in mind that the rate went up quite a bit on 10/1.