Have an airline pilot who is paid $1.60 each hour while away from domicile; or on ready reserve. He is paid "per trip hour (prorated to the nearest minute) from the report time of a trip sequence through the debriefing period following the flight leg that returns him to domicile. In this particular insdtance box 12 of W-2 has $3,590.00 CODE L representing 2,244 trip hours. Of course ATX moves this amount automatically to line 7 of the 2106. In order to get a 2106 deduction he had to come up with more than 92 overnight stays. For example: 92 x 52.00 x 75% = 3,588. He advised me his records show 125 over night stays. Thus, 125 x 52.00 x 75% = $4,875.00; which is further reduced by 2%. Page 8-13 of the taxbook makes reference to a reduced rate for travel on first and last day of trip. I would say this would work for a slower mode of transportation like a Big Rig or private vehcile --- BUT an aircraft?? What (if any) reasonable business practice method would be applicable to first and last day flights? Sure would appreciate any help on this. Thanks.......
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First and Last day
The IRS says that the day you leave and the day you come back that you can take 75% of the per diem for those days -- the days in between you can take 100% of the per diem (of course, both percentages still subject further to either 50% or the DOT %). The rationale here is that the day you leave you probably ate breakfast at home; and the day you came back you probably had supper at home. Taking 75% for days leaving/returning is a safe harbor -- you can use whatever method is consistent.
Bill
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