When can per diem be used?

[kamckinley]

Hi All. I am completely brain dead. I should know this, but I can't come up with it in my current fuzzy mental state...

I have a client who is a salesperson for an insurance company. He travels frequently for business and pays for his own hotel and meals. He is not reimbursed by his company, and there is no accountable plan. Can he use per diem for both lodging and meals? It seems like I read somewhere the per diem could only be used for meals and that he had to use actual costs for lodging, but I can't find that resource now. Can anyone clarify this for me?

Thank you!

[kamckinley]

I think I found the answer...

"There is no optional standard lodging amount similar to the standard meal allowance. Your allowable lodging expense deduction is your actual cost."

Found in IRS Pub 463. https://www.irs.gov/publications/p463/ch01.html

[TaxGuyBill]

Yep, you got it.