Trucker per-diem for meals?

[Hamacher]

Do they allow a simplified method of calculating a meals allowance for a Schedule C filer? My client operates as a team and spent 262 days on the road. They have a sleeper on their truck so they do not have any lodging expenses. I thought I read somewhere that is was around $52 but I wasn't sure what all that included and I wasn't sure if because they are a team if they would simply double that.

Thanks in advance!

[Brad Imsdahl]

There is no standard deduction for lodging. You have to use actual expenses. For meals only, a trucker can take the per diem allowance as a standard deduction, even if actual expenses incurred are less. It does not matter how many people ride in the same truck. The per diem allowance is a per person allowance.

TTB, pages 8-3 through 8-5 provides a couple of ways to calculate per diem. You can use the per location method, or the high-low method, or you can use the transportation industry meals only method, which is $52 per day, regardless of location traveled.

[BOB W]

Team????

Filing a Schedule C????? What is wrong with this picture.

[Hamacher]

Filing a Schedule C????? What is wrong with this picture.

Husband and wife "team"

Thanks for the replies. I just wanted to make sure I was remembering everything correctly.

[ecb34691]

Nothing - Not all truckers are W-2 people. Ever heard of "owner/operator" and DOT rules? About half of my truckers are Sch C the rest are W-2's.

[Larmil]

Filing a Schedule C????? What is wrong with this picture.

Filing "A" schedule C rather than two Scedule C's.

[MAMalody]

Let's not forget that those drivers subjec to DOT rules must reduce their meal expense by 25%.

[ecb34691]

I know. My software does when I answer the question "Are you subject to DOT rules, etc?"

[Zee]

Filing "A" schedule C rather than two Scedule C's.

So...what's the answer. Should this husband & wife "team" file two Schedule C's, or a partnership return?

[jainen]

along for the ride

>>husband & wife "team"<<

Two Schedule C's doesn't make sense. If they are both working on the same job, it's either a partnership, a sole proprietorship with an employee, a sole proprietorship with both of them (in community property states only), or a sole proprietorship with a non-deductible spouse coming along for the ride.

[Brad Imsdahl]

So...what's the answer. Should this husband & wife "team" file two Schedule C's, or a partnership return?

A husband and wife business never has to file as a partnership when there are no special allocations, all income and expenses are properly and timely reported on the 1040, none of the separately stated deductions from the Schedule K-1 are abused (such as Sec 179 limits), and self employment tax is properly split on two separate Schedule SE’s. There are those, including my co-author, who will jump down my throat for saying this, but nobody will be able to provide a citation of any penalty that can be imposed for taking this position.

[Zee]

Agree 100%. Of course, two Schedule C's "doesn't make sense". But...this is often done.

[Zee]

A husband and wife business never has to file as a partnership when there are no special allocations, all income and expenses are properly and timely reported on the 1040, none of the separately stated deductions from the Schedule K-1 are abused (such as Sec 179 limits), and self employment tax is properly split on two separate Schedule SE’s. There are those, including my co-author, who will jump down my throat for saying this, but nobody will be able to provide a citation of any penalty that can be imposed for taking this position.

Hmmm...our posts crossed the internet at about the same time. Mine agreed with jainen and I tried to delete it not to confuse the issue further, but it still seems included.

I'm wondering....what about the assets & depreciation? For example, the big one...the truck. What if it's only in the husband/wife's name? I'm sure there are many business situations ran by a husband & wife. Brad...is this in the Tax Book any place?

[Brad Imsdahl]

TheTaxBook, page 5-7 says they have to file Form 1065 as a partnership. I wrote Tab 5.

I don't have to agree with what I wrote which is based upon official IRS Pubs and instructions. Paul and I have been arguing this point ever since we wrote for the other company. We also argued the point to the nth degree on this thread under our alias names: http://www.thetaxbook.com/forums/sho...id=97#poststop

[Zee]

TheTaxBook, page 5-7 says they have to file Form 1065 as a partnership. I wrote Tab 5.

I don't have to agree with what I wrote which is based upon official IRS Pubs and instructions. Paul and I have been arguing this point ever since we wrote for the other company. We also argued the point to the nth degree on this thread under our alias names: http://www.thetaxbook.com/forums/sho...id=97#poststop

LOL. I don't seem to be able to agree with myself either. It's interesting. When I read threads like this, I realize this is a most likely a very common situation in many husband & wife businesses. But, it could create some interesting SE tax issues and others. One last question...which is most likely the most frequently used method?