TaxMonkey wrote:Why would her meals and lodging be deductible?
Doug M wrote:If taxpayer is on a temporary work assignment, expected to last less than 1 year, why not?
Were you able to determine that from the content of the post?
It seems clear that both an employee and/or a self-employed (SE) individual may deduct on form 2106 or Schedule C for a SE individual the M&IE per diem published rates as long as they can substantiate the elements of time, place and business purpose under Reg. 1.274-5T(c) Rules of substantiation. To me that is sort of a disconnect discussed in Reg. 1.274-5T(c)(2) Substantiation by adequate records as I would think one would also need actual receipts for meals and incidental expenses but Rev Proc 2007-63, Sec 4.03 seems to say otherwise. Without receipts for meals, how does one adequately substantiate the expense?
2007-47 Sec 7.05 - .05 “If the amount of the expenses that is deemed substantiated
under the rules provided in section 4.01, 4.02, or 5 of this revenue procedure is less than the amount of the employee's business expenses for travel away from home, the employee may claim an itemized deduction for the amount by which the business travel expenses exceed the amount that is deemed substantiated, provided the employee substantiates all the business travel expenses (not just the excess over the federal per diem rate), includes on Form 2106, “Employee Business Expenses,” the deemed substantiated portion of the per diem allowance received from the payor, and includes in gross income the portion (if any) of the per diem allowance received from the payor that exceeds the amount deemed substantiated. See ' 1.274-5(f)(2)(iii).”
So lets go back to lodging and travel for taxpayers and employees who are not covered by an expense reimbursement plan which is where my question was directed.
Without receipts for meals, how does one adequately substantiate the expense?
Can an employee deduct the federal per diem rate for lodging on Form 2016 or are they required to take actual expenses (only) for lodging and travel.
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