S-Corp. Shareholder travel reimbursement

[Gretel]

Can someone please confirm this:

Per diem allowed for mileage and meals, but not for lodging.

Thank you.

[Davc]

Can someone please confirm this:

Per diem allowed for mileage and meals, but not for lodging.

Thank you.

Close. SMR allowed for milage and per diem for Meals & Incidentals.

[Corduroy Frog]

Lodging

Agree to all of the above.

However, that being the case, what is the purpose for publishing per diem rates for "lodging?"

I can think of two reasons:

1) Under "accountable plans", an employee may be reimbursed for per diem lodging without creating a taxable event for himself. (Note: taxable revenue and deductible expense take on a divergent application here -- avoiding taxation does not equate to a deductible expense).

2) Government bureaucrats (Civil Service) get an even HIGHER per diem than average people like us. There is, I believe, another set of per diem rates that they use.

[Gretel]

Agree to all of the above.

However, that being the case, what is the purpose for publishing per diem rates for "lodging?"

I can think of two reasons:

1) Under "accountable plans", an employee may be reimbursed for per diem lodging without creating a taxable event for himself. (Note: taxable revenue and deductible expense take on a divergent application here -- avoiding taxation does not equate to a deductible expense).

I read that too. I think that the exception is only for more than 2% shareholders.