Subsistance, Travel Pay, Work Related Expense, Per Diem

[FEDUKE404]

Additional question

Does this guy by any chance sell Amway on the side?

[AJsTax]

I
T

I do wonder though..........if the client doesn't list actual expenses (for lodging and meals) on the return - because of per diem covering it - can they still deduct for the rented furnishings while staying at the the rented house? I would think that if they are going with per diem, then the rest of the expenses related to lodging would be thrown out. Or what about the propane that they hook up to the outside of their travel trailer when he's on a different temporary job location? Is that part of the lodging expense covered in per diem?

Thanks again for your thoughts.

Becky

The mileage is good if the employer is not paying for it besides the per diem. I just have not had time to enter the references to your questions, but if per diem is used, the expenses are DEEMED substantiated by rule. And all the expenses involved with keeping the house would be covered by the lodging share of the per diem. Could they take the excess on a 2106 if they had all the receipts. Sure, but why stir up a mess if the difference is small after the reimbursement (per diem) is figured in and a hit for 2% of the gross taxable income.
The rules state that if the employer pays per diem the expenses are deemed substantiated and the employee must only validate business purpose and place and time of the expenses. When he turns in a pay sheet showing when and where he worked he is doing that.

[Davc]

The rules state that if the employer pays per diem the expenses are deemed substantiated and the employee must only validate business purpose and place and time of the expenses.

Not quite. The amounts are deemed substantiated, not the existence of the expenses. As my example in my previous post if all of the workers are paid the "per diem" even if they are working in their home area then it is not an accountable plan.