Long Distance Trucker Per Diem Deduction

Forum|Forum|2 years ago
December 29, 2023
3 replies
20 views

Can an S-Corp owner operator long distance truck driver (paid by W-2) deduct per diem meals on 1120-S or can they only deduct actual meal and lodging expenses? If per diem is it still 80% and if actual expenses, is it 50% or 80%?

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T

TaxGuyBill

Level 15

Yes, they can use the Standard Meal Allowance (using the Per Diem rate for meals). They deduct 80%, and have the option to use the higher "transportation worker" rate.

They can only use Actual Expenses for lodging.

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TSW Author

Level 3

So for all the days he was away from his tax home, he can deduct 80% of $69 per day on his 1120-S? Even though was the owner operator while paying himself a W-2 salary throughout the year correct?

qbteachmt

Level 15

"As of now, the IRS allows $69 per day in the continental United States. Keep in mind that you’re only permitted to take this deduction while traveling a distance that requires you to sleep or rest away from home."

From: https://www.rivierafinance.com/finance-blog/tax-deductions-for-owner-operator-truck-drivers/

The disqualification for lodging per diem assumes your client is a more than 10% shareholder.

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PATAX

Level 12

you may also want to check state rules for the state return, to see per diem and actual expense rules.

BobKamman

Level 15

Notwithstanding the Supreme Court decision in Citizens United (holding that corporations are the same as people, when it comes to political spending), it is still the case that corporations do not eat anything. Therefore, they do not consume meals. If they reimburse their employees for meals, then those might be fully or partially deductible. An S Corp with one shareholder would follow the same rules on that, as UPS and FedEx.

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