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 you
that you don’t want to fall into.
What is it? How can you avoid it?
Read my new article titled Tax Tips: Does the Per Diem Expense Option Stick It to Business Owners?
Three ways our fact-filled article can help you:
- We’ll tell you why the per diem travel expense option may not make sense for you. If you were an employee, and not a business owner, the IRS would allow your employees to use a single per diem amount for the day. But as a business owner, you are not permitted to use the desirable single-amount-daily per diem option. (Thanks, IRS!) To get the whole story, read the full article.
- We’ll show you the best way to handle the problem. As a business owner you’re also barred from using the high-low standard meal allowance. There’s no prohibition, however, on owners using the standard meal allowance of $55 to $76 per day (i.e., meals and incidentals but no lodging). We’ll give you all the details when you read the full article.
- We’ll explain other important issues you should be aware of. We’ll cover why federal per diem allowances vary by your location, why paperwork requirements still remain, how to legitimately deduct more than you spend, and much more. We’ll make everything clear when you read the full article.