Business Deductions
- Amortization
- Business Losses and Net Operating Losses
- Car and Truck Expenses
- Day-Care Services
- Depreciating Business Property
- Depreciating Your Car
- Domestic Production Activities Deduction
- Health Insurance Deduction
- Home Office Deduction
- Meal and Entertainment Expenses
- Organizational Costs and Start-up Costs
- Qualified Plan Awards
- Schedule C Expenses
- Section 197 Intangibles
- Should You Sell or Trade in Your Car?
- Start-up Costs
- Travel Expenses
More Tax Topics
- Business Structures
- Hiring Workers
- Retirement
- Top Tax Myths
- Per Diem Rates - IRS Publication 1542 Oct 2011 for Travel Within the Continental U.S (for employers who pay a per diem allowance to employees)
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Need Some Deductions for 2011?
Don't overlook these!
Updated for 2011
Travel Expenses
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Claiming the IRS Meal Allowance
You must prorate the allowance for the FIRST and LAST day of the trip:
- Claim 75% of the allowance for day you depart for your trip and 75% of the allowance for the day you return from your trip.
- If you're away for a regular "9 to 5" business day, you may claim 100% of the allowance.
Self-employed:
If you're self-employed, you may claim 50% of your meals allowance on Schedule C.
Employees:
If you're an employee, use Form 2106, Employee Business Expenses (or 2106-EZ to report your meal allowance along with your other business-related expenses and reimbursements. Only 50% of the meal allowance is deductible.
The 50% meal allowance is deducted on Schedule A as a miscellaneous itemized deduction. It's added to any other miscellaneous deductions you may have and is subject to the 2% of adjusted gross income (AGI) floor.
For example, if your AGI is $50,000, 2% x $50,000 is $1,000. If your total miscellaneous deductions are $1,100, only $100 is deductible.
Transportation Industry Workers
For 2011, 80% of meal costs are deductible for the following individuals subject to the Department of Transportation hours of service limits:
- Interstate Truck drivers
- Pilots
- Railroad operators, and
- Other transportation industry employees subject to the Department of Transportation hours of service limits.
Your lodging expense is your actual cost. There is a per diem allowance for employers to use to reimburse employees.
See IRS Publication 1542 for more information.
Next:
Travel Expenses: Travel By Cruise Ship
Related Links
- Domestic Per Diem Rates
- What Are Travel Expenses?
- Who May Deduct Travel Expenses?
- Items Included in Travel Expenses
- Tax Terms You Need to Know-Ordinary and Necessary Expenses
- Tax Terms You Need to Know-Tax Home Defined
- Tax Terms You Need to Know-Tax Home Example
- Tax Terms You Need to Know-Transient and Away From Home Test
- Personal Expenses
- Expenses of a Spouse, Dependent, or Other Individual
- Entertainment Expenses of Non-Employees
- Entertainment Expenses of Non-Employees-Example
- Employee Travel Expenses
- Employer Error Reporting Travel Expense Reimbursement on Form W-2
- Employee Accountable Plan
- Commuting Costs
- When You May Deduct Commuting Costs
- Temporary Work Locations and Commuting Expenses
- Temporary Work Location-Example
- What if Your Expectations for the Length of Time to Work Changes?
- Professionals Traveling to Clients' Sites
- Business Conventions and Seminars
- Investment Conventions
- Video Tapes Received at a Business Discussion
- IRS Meal Allowance
- If Employer is a Relative
- Daily Meal Allowance Amount
- Travel Expense Records You Must Keep
- Transportation Industry Workers
- Business-Vacation Trips Inside the U.S.
- Business-Vacation Trips Outside the U.S.
Copyright © 2008-2012 Larry Villano. All rights reserved.