Career Path > Tax Q&A
Department of Labor and Per Diem Payments - The IRS continues its audits
traveltax:
--- Quote from: radbrat on Jul 16, 2014, 12:59 ---gotcha...tanx
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And I didn't mention AMT that often applies as well
Rennhack:
--- Quote from: traveltax on Jul 16, 2014, 12:54 ---One thing to add- you cannot deduct the lodging per diem on the GSA site- only actual expenses for lodging.
--- End quote ---
So....
If I have 4 nights of lodging that are not reimbursed. (For example I only get paid per Diem Monday - Friday, but I travel for 2 days there and back, stopping at hotels along the way.)
You are saying that I can not take the GSA lodging rate for those 4 days and put it on line 3 of form 2106. You are saying that I have to claim the actual amount I paid for the room. Only the 5 days that I was under the accountable plan and received the GSA rate from my employer are allowed to be the GSA rate? Is that correct?
And... is there an official document some where that says that specifically, or is that just the obvious interpretation of the law.
traveltax:
--- Quote from: Rennhack on Jul 16, 2014, 03:44 ---So....
If I have 4 nights of lodging that are not reimbursed. (For example I only get paid per Diem Monday - Friday, but I travel for 2 days there and back, stopping at hotels along the way.)
You are saying that I can not take the GSA lodging rate for those 4 days and put it on line 3 of form 2106. You are saying that I have to claim the actual amount I paid for the room. Only the 5 days that I was under the accountable plan and received the GSA rate from my employer are allowed to be the GSA rate? Is that correct?
And... is there an official document some where that says that specifically, or is that just the obvious interpretation of the law.
--- End quote ---
4 scenarios
1) No per diem for lodging en route or on return, but incur lodging expense - claim actual expenses
2) Per diem for lodging equals or exceeds your actual expenses for that day - nothing claimed for that day. Lodging per diem is substantiated because you incurred an expense (keep receipts to prove an expense however)
3) Lodging per diem less than actual expense for the day - claim the expense and claim the per diem received
4) No per diem through the entire contract- claim actual expenses.
Only the employer can use the lodging portion of the per diem tables to determine the payment. Any employee or >10% owner of a company cannot use the lodging portion of the per diem table for their deduction. Look at page 6, Publication 463, first column, 3/4 down the page under the caution symbol:
" There is no optional standard lodging amount similar to the standard meal allowance. Your allowable lodging expense deduction is your actual cost"
Rennhack:
--- Quote from: traveltax on Jul 16, 2014, 10:47 ---Go to my website and look at the FAQ's- I cover most of this
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Your FAQ's are great, I'd love to 'borrow' a couple of them for here, attributing proper source with links of course.
Here is a direct link to his FAQ's: http://www.traveltax.com/html/TaxEdTravelling.html
Favorites:
"50 mile rule" I did not know it was an urban myth, thank you for the FACTS.
"Husband and Wife Co-travelers" Both can LEGALLY get per diem, I didn't think they could (but they do).
"Moving Expense, Am I moving?" loved it, wish I had this info 20 years ago.
"Returning to the same area" was a great read also. A 3 week break is "not significant", a 7 month beak is "significant". Between there you are rolling the dice.
Rennhack:
--- Quote from: traveltax on Jul 16, 2014, 04:01 ---4 scenarios
1) No per diem for lodging en route or on return, but incur lodging expense - claim actual expenses
2) Per diem for lodging equals or exceeds your actual expenses for that day - nothing claimed for that day. Lodging per diem is substantiated because you incurred an expense (keep receipts to prove an expense however)
3) Lodging per diem less than actual expense for the day - claim the expense and claim the per diem received
4) No per diem through the entire contract- claim actual expenses.
Only the employer can use the lodging portion of the per diem tables to determine the payment. Any employee or >10% owner of a company cannot use the lodging portion of the per diem table for their deduction. Look at page 6, Publication 463, first column, 3/4 down the page under the caution symbol:
" There is no optional standard lodging amount similar to the standard meal allowance. Your allowable lodging expense deduction is your actual cost"
--- End quote ---
I appreciate the extra info and the quoted source. You are da man!
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