Meals actual vs per diem per year or per occurence

[Gretel]

A question just popped up they I never considered and could not find an answer to. Schedule C client has expenses for out of town meals, sometimes actual is more, sometimes per diem is more. Can he go back and forth throughout the year or does is need to be consistent within one year?

[Kram BergGold]

Trip by Trip

You can use either method per trip. So switching per trip in a year is permissible.

[Roland Slugg]

Did you consult IRS Pub 463? I think it's pretty clear that you must choose one method or the other each year ... kinda like the SMR for business mileage.

[Gretel]

Did you consult IRS Pub 463? I think it's pretty clear that you must choose one method or the other each year ... kinda like the SMR for business mileage.

Yes, this is exactly what I did plus TTB. Would you please be so kind to point me to the page in Pub 463, Roland. Thanks,

[ttbtaxes]

When I read Rev. Proc. 2011-47, I come away with a day-by-day, trip-by-trip basis. Having said that, matters are more complicated when we're talking about accountable plans or the periodic rule.

[ATSMAN]

When I read Rev. Proc. 2011-47, I come away with a day-by-day, trip-by-trip basis. Having said that, matters are more complicated when we're talking about accountable plans or the periodic rule.

If you read the examples in the Rev. Proc it talks about "per trip". That leads me to conclude that you have to treat a particular "trip' one way or the other method and not mix and match. But another trip in the same tax year may be actual expenses. The record keeping could be a nightmare!