Expenses for truck driver - per diem?

[Janitor Bob]

OK....doing 2005 taxes for a truck driver (as well as 06,07,08,09). I have never done taxes for an independent truck driver until now, so not familiar with what types of expenses they have to offset their 1099-MISC income.

I am OK on fuel, repairs, etc...but driver/client is telling me that he thinks there is a per-diem rate that can be used as an expense....a certain dollar amount for every day that he is out on the road doing runs. Is anybody familiar with this?

He states that the last preparer he went to (a few years ago) just took this dollar amount/day as an expense, and told driver/client that if ever audited, he would need to go to the company that paid him to get the support (mileage, log books, etc) because he had turned them into the company.

The driver/client has approx. $16,000 in 1099-MISC income, but nothing to support expenses except some fuel receipts

[Gail in Virginia]

The driver is referring to a per diem amount for his expenses for meals and incidentals. For the transportation industry, inside the continental US, it was $52 per day from 10/08 through 9/09, and effective 10/09 it becomes $59.

[Janitor Bob]

Thanks! So I could use this per diem for every day he was on the road....that way we do not need actual receipts...just log books if ever audited?

Do you have any idea what rate were for 05, 06, 07....any ideas on where to look (publication number?)

Thanks again

[Gail in Virginia]

Beginning 10/06 through 10/08 it was $52 according to the chart in NCPE's tax update book. I know the amount is listed in Pub 17 under the meals expense section of Travel Expenses deductible. I don't have it immediately available for the earlier years, but if you have trouble finding it let me know and I will look harder.

[jainen]

>>it was $52 per day<<

Careful, Janitor Bob! That rate is LESS than the rate for many cities, so in my opinion you should only use it if the travel is to areas with a different rate on each day. Also remember that even the standard rate is still subject to specific substantiation of time, place, and business purpose, sometimes a tough rule for non-filers. Furthermore, only 50% is deductible, same as other meal expenses. (Or you can deduct 80% if your client can benefit from trucking industry lobbyists who have scored a special tax break for inter-state haulers subject to D.O.T. regs.) Check out Pub 463 for details.

[Gail in Virginia]

That rate is a special per diem for transportation workers that does not require you to specify the cities. It is less than the rate for some cities, but you cannot pick and choose. If you use the standard rate, it has to be for the entire year NOT just when it is to your benefit.

[cathyan]

You can use the $52 for every FULL day he was out. For days he left and came back, depending on what times those were, you use either 3/4 or 1/2 day. Also, if he had layover out of town, those are counted as full days.

I like to have the log books, 'cause then I can tell for sure where they were then.

SOME companies will have info on their breakdown sheets that you can get this from.

[mcb39]

Yes, it is a standard deduction for OTR truckers and I have never had one checked and have done a lot of them over the years. It is for meals, entertainment and miscellaneous expenses. If he had motel rooms or other expenses, they are additional deductions. It used to be figured at 50% of the total for DOT drivers. It has gone up in 5% increments over the years to where it was at 80% last year. When they get to 85%; they will stop the increase. 85% was the standard many years ago. The Form 2106 for each year will tell you what the percentage of deduction is for DOT drivers; which means that they have to transport materials, products or humans interstate. If you really have an issue finding out what the per diem rate was for each year, either Gail or I can help you with that. If he is strictly intrastate, he is only allowed to deduct 50% and, incidentally, these days out have to be days spent overnight away from home.

[Janitor Bob]

Yes, it is a standard deduction for OTR truckers and I have never had one checked and have done a lot of them over the years. It is for meals, entertainment and miscellaneous expenses. If he had motel rooms or other expenses, they are additional deductions. It used to be figured at 50% of the total for DOT drivers. It has gone up in 5% increments over the years to where it was at 80% last year. When they get to 85%; they will stop the increase. 85% was the standard many years ago. The Form 2106 for each year will tell you what the percentage of deduction is for DOT drivers; which means that they have to transport materials, products or humans interstate. If you really have an issue finding out what the per diem rate was for each year, either Gail or I can help you with that. If he is strictly intrastate, he is only allowed to deduct 50% and, incidentally, these days out have to be days spent overnight away from home.

Thanks...I can see from the few logs and expense sheets that he does have that he is an intestate driver...moving loads all over the country. Others have posted the rates starting in 2006, but I will need 2005...do not know where to get that. Do I just enter that amount (days x per-diem rate)in the meals and entertainmnent area on the Schedule C?

[rich]

OK....doing 2005 taxes for a truck driver (as well as 06,07,08,09). I have never done taxes for an independent truck driver until now, so not familiar with what types of expenses they have to offset their 1099-MISC income.

I am OK on fuel, repairs, etc...but driver/client is telling me that he thinks there is a per-diem rate that can be used as an expense....a certain dollar amount for every day that he is out on the road doing runs. Is anybody familiar with this?

He states that the last preparer he went to (a few years ago) just took this dollar amount/day as an expense, and told driver/client that if ever audited, he would need to go to the company that paid him to get the support (mileage, log books, etc) because he had turned them into the company.

The driver/client has approx. $16,000 in 1099-MISC income, but nothing to support expenses except some fuel receipts

And driver has to travel over 100 miles away from home to avail the deduction.

[Gail in Virginia]

In 2005, according to PUB 17 for that year, the rate was $41 until 9/30/09, when it became $52 for the rest of the year for transportation workers. (p. 169, Pub 17 for use in preparing returns for 2005, from IRS website.)

http://www.irs.gov/pub/irs-prior/p17--2005.pdf

[Gail in Virginia]

On the previous forum, someone posted this worksheet for truckers to help capture expenses. I wish I could remember who so I could give them credit. I hope that I am correctly posting this, and that you will find it useful.

Truck Driver Occupational Expenses.xls

[Janitor Bob]

On the previous forum, someone posted this worksheet for truckers to help capture expenses. I wish I could remember who so I could give them credit. I hope that I am correctly posting this, and that you will find it useful.

Thanks to all of you...I found my 2005 Pub 17...I love this board!