If you run your own business and travel on business, the per diem option may look like a good deal. I get it. That’s because instead of keeping track of every dollar you spend on travel and lodging, you can deduct a fixed amount and call it a day. But be careful! There’s a business-owner per diem trap set for youthat you don’t want to fall into. What is it? How … [Read more...]
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Per Diems Post-Tax Reform: What the TCJA Has and Hasn’t Changed
Do you have employees who travel on business for your company? Then you know that complicated recordkeeping is a royal pain in the neck for you and your employees. What’s more, handling things the wrong way puts you at risk for an audit disallowance. Well, there’s a solution to these problems. Consider using the IRS travel per diem method. Want to learn how the per … [Read more...]
TCJA Creates New Reasons for Accountable-Plan Expense Reimbursements
What is an accountable plan? An accountable plan is an expense reimbursement or allowance arrangement that requires employees to substantiate expenses and return unsubstantiated advances. With the plan, the reimbursements are tax-free to recipient employees. And the company can deduct the reimbursements as business expenses. Do you use an accountable plan for your … [Read more...]
Can the IRS Require Odometer Readings with the Mileage Rate?
When it comes to calculating a deduction for the business miles you drive, Uncle Sam gives you two choices. You can use… 1. The IRS standard mileage method or 2. The actual vehicle expense method In this issue of the Tax Reduction Letter we’ll explain everything you need to know if you’re using the IRS mileage method. Don’t miss this important information. We … [Read more...]
Taxpayer Avoided 15 Hours of Paperwork; Lost $35,000 to the IRS
Most taxpayers find that keeping accurate records is a pain in the neck. But failing to keep these records can cost you a tremendous amount of money. That could be true even when it comes to tracking what you’ve spent over the years on home improvements. We’ve run the numbers on the Pendergrafts and discovered that they avoided just fifteen hours of paperwork that cost … [Read more...]