Per Diem Rates

[RNuse09]

Hello,

Have a client that walked intoday who is a heavy machinery operator. Was on a job for half the year in 09 and half the year 10. Last years accountant used per diem rates for the meals and incidental expenses, which amounted to 6,787 before the 50% limitation. The client purchased a traoler to live in on weekdays while on the job. The preparer from last year would not let him deduct any lodging expenses rt mileage. From what I have been reading he would be entitled to meals, lodging, and incidentals. I want to use the per diem rates which would be around 120 a day. He has very few receipts even though I'm sure he had all the expenses so I wa going to use 75 a day per diem becasue that amount does not require receipts. What do you guys think? By the way his employer does not reimburse him for any of these expenses.

[solomon]

Hello,

Have a client that walked intoday who is a heavy machinery operator. Was on a job for half the year in 09 and half the year 10. Last years accountant used per diem rates for the meals and incidental expenses, which amounted to 6,787 before the 50% limitation. The client purchased a traoler to live in on weekdays while on the job. The preparer from last year would not let him deduct any lodging expenses rt mileage. From what I have been reading he would be entitled to meals, lodging, and incidentals. I want to use the per diem rates which would be around 120 a day. He has very few receipts even though I'm sure he had all the expenses so I wa going to use 75 a day per diem becasue that amount does not require receipts. What do you guys think? By the way his employer does not reimburse him for any of these expenses.

See Revenue Ruling 99-7. This will clarify some things and give you an indication why the prior preparer relied upon his positions.

Per Diem for lodging is not permissible in this case.

I do not believe the $75 you reference (§1.274-5(c)(iii)(2)) would be applicable as you describe it.

[RNuse09]

New Idea

I do see that you can't use per diem rates for lodging. The thing in question though is trailer. He pays for heat , tv, water, and electric. He uses the trailer strictly for work. I was thinking per diem for meals and incidentals at 46 dollars becasue the work location is not specifically on page 8-3. And then depreciate the trailer and expense all of the utility bills. Am I on the right track with this approach.

[Gretel]

Yes, I agree with taking all expenses plus depreciation on trailer if strictly used for work.

[Davc]

Did he have family members staying overnight in the trailer at all during the year?