We have just started our own trucking LLC and are going to file as an S Corp. One of our owners (owns 98% of company) will be driving OTR away from home on a regular basis. He is driving at DOT Class B vehicle and will be paid as an employee/DOT driver. We want the coporation to pay for all meals, fuel, and lodging expenses for our "DOT Driver" classification employees (we plan to expand to have other drivers). All meals, fuel and lodging could be paid with a corporate credit card. Can the corporation deduct 100% of actual charges for meals, lodging and fuel on its S Corp income tax filing?
We are considering an alternate per diem payment for drivers. Can the corporation pay drivers $59 per diem when they are traveling overnight? Can the corporation deduct 100% of the $59 as a business expense or is the corporation subject to the 80% rule?
Our corporation does not own the vehicles (yet). Our corporation is providing driving services to another corporation. Our corporation is paid a percentage of the rate. Our corporation is responsible for all fuel charges and driver expenses.
