Truck Driver Meal Allowance

[rgtaxservice]

I've got my first truck driver. (Wow, I sounded like a lot lizard or bunk skunk.)

Do the 3/4 prorated departure and return days come into play for transportion workers as well? Driver leaves on day 1, day 2 on the road, day 3 returns home. That would 2 3/4's and 1 full per diem ($78 + $52=130 per trip).

It's the same turnaround trip. My thinking that I can use Method 2 and consider day 1 as a full day since the driver will run until he has to log out. Day 3 will depend on how long he actually logged in

[Snaggletooth]

I think so

I know IRS won't challenge less than $25/day. One of the problems with "per diem" is choosing the city when the driver makes 500 miles a day. In all honesty, I have several truck drivers and I don't know a single one of them who would exceed the national minimum of $39.

Per diem is a very generous allowance in my opinion. I don't know anyone who can't live with it. But if you really want to get your dander up, realize that the civil service (e.g. IRS auditors) has their OWN per diem schedule that is head and shoulders above the per diem published for taxpayers.

[rgtaxservice]

I know IRS won't challenge less than $25/day. One of the problems with "per diem" is choosing the city when the driver makes 500 miles a day. In all honesty, I have several truck drivers and I don't know a single one of them who would exceed the national minimum of $39.

TTB lists the per diem at $52/day for transportion workers. Why not use it?

My concern is dealing with departure and return days. The pub lists two methods: the 3/4 rule, and Method two - whatever you want provided its consistant. The example for method two is a taxpayer that claims the full rate for depart/return days. Now that's generous.

The driver has three different routes that he runs during the year. He's going to break down his log by # of trips for each route. Each route has at least one 'logout time' required for the 10 hours rest. I'm trying to get an idea of what info I need to draw out of his logs so I can let him know the info I require.

[rgtaxservice]

on the road again

I know IRS won't challenge less than $25/day. One of the problems with "per diem" is choosing the city when the driver makes 500 miles a day. In all honesty, I have several truck drivers and I don't know a single one of them who would exceed the national minimum of $39.

TTB lists the per diem at $52/day for transportion workers. Why not use it?

My concern is dealing with departure and return days. The pub lists two methods: the 3/4 rule, and Method two - whatever you want provided its consistant. The example for method two is a taxpayer that claims the full rate for depart/return days. Now that's generous.

The driver has three different routes that he runs during the year. He's going to break down his log by # of trips for each route. Each route has at least one 'logout time' required for the 10 hours rest. I'm trying to get an idea of what info I need to draw out of his logs so I can let him know the info I require.

[rgtaxservice]

Sorry, I must have done wrong to double post.

[dmj4]

Not automatic $52

My understanding is that they must travel to different cities with different rates during the same trip for the $52 to apply.

This is not the exact working. I am just going on memory.

dmj4

[SunTaxMan]

Transportation Workers - per diem.

Transportation workers, i.e., Drivers, those subject to Department of Transportation Hours of Service Regulations, are the focus of the "Transportation Workers" "level" per diem for meals.

It does not matter how far they travel, or how long the trip is - the key element is HOS regulations AND that the Driver is "away from home overnight." No meal allowance, per diem or actual if no "overnight" travel is involved.

The "location" of the layover point is also irrelevant - the per diem is a flat amount regardless of location.

Also, the Drivers Daily Log is only a starting point for determing "trips." DOT has a focus on this log - punch in and punch out time for the Driver. IRS deals with "home" to "home" for the per diem on overnight expense - "tax home." This becomes significant only if the Driver commutes a longer distance to work. IRS deals with "home to home." If a Driver commutes an hour or two to the terminal (and I know Drivers who commute even longer distances, e.g, I know one Driver who lives in Florida and works for a Company is North Jersey), this will "lengthen" the overnight trip - it could even affect which DAY is the "first" and "last" day of the trip. For these Drivers the "overnight trip" begins when he leaves home, not when he punches in (and begins to record time on the Drivers Daily Log). By the way, that Driver who lives in FL and works in NJ has overnight "trips" that are several MONTHS in length.

Commuting COST is never deductible, but commuting TIME is always considered for the per diem.

Also, the length of the days, other than the first and last day of the trip, is not relevant - the Driver is ALREADY "away from home overnight."

Also, if a Driver takes "time off" - several days or a week, while away from home overnight, this then becomes non-deductible, BECAUSE he is not "at work" at these times (or on these days) - individual "facts and circumstances" need to be considered.

One more thought, on those trips where the Driver is using the per diem for meals - if on a particular day, the Driver encounters ACTUAL cost in excess of the per diem, he can use the actual cost FOR THAT DAY. Now the guidance on meal cost becomes "reasonable and necessary" - and the "reasonableness" of the meal cost could very well vary by location.

One more thought, per diem only applies to meals and "incidental" expenses - never to lodging, which must always be actual cost. The Driver who "lives" in the sleeper has limited "lodging" costs, i.e., the bedding and laundering of that bedding, the TV and/or the regrigerator, in the bunk, etc.

[Jesse]

Truckers/Transportation industry people not only receive the higher per diem, they are also able to deduct 75% of the meals as opposed to the 50% for others.