Deductions and Write-Offs
The most frequently asked tax questions related to Deductions and Write-Offs
What is the per diem rate for incidentals?
Asked Monday, November 14, 2011 by an anonymous userCPA Answer:
You have the option of deducting the actual expenses or a allowance of $5.
What is the current year IRS Meal Allowance?
Asked Monday, November 14, 2011 by an anonymous userCPA Answer:
For travel within the US the 2011 meal allowance is $46 a day. But higher rates apply to certain high cost areas designated by the government. These higher rates can be found in IRS Pub 1542 at www.irs.gov/formspubs/index.html or www.gsa.gov and click on per diem rates.
Are my meal costs during overtime deductible?
Asked Monday, November 14, 2011 by an anonymous userCPA Answer:
These costs are not deductible if you are not away from your place of business.
Are my meal costs deductible?
Asked Monday, November 14, 2011 by an anonymous userCPA Answer:
To be deductible, meal costs must be incurred while away from home. The away from home test requires that the person be on a business trip that lasts longer than one business day and requires time off to sleep before returning home. Meal costs while away from home are subject to the 50% deduction limit.
Temporary place of work
Asked Monday, November 14, 2011 by an anonymous userCPA Answer:
The IRS considers a work location temporary is one at which the employment is realistically expected to last and actually does last for a period of 1 year or less. A worker can deduct their unreimbursed costs of driving to temporary locations.
Are there deductible commuting expenses?
Asked Monday, November 14, 2011 by an anonymous userCPA Answer:
The IRS allows 2 exceptions. If you are on a business trip out of town you may deduct taxi fares and other transportation costs from your hotel to your first business call and all other transportation costs between business calls. Also the additional costs of transporting tools to work are deductible.
What are the per diem rates for travel outside the US?
Asked Monday, November 14, 2011 by an anonymous userCPA Answer:
Different rates apply for travel in Alaska, Hawaii, Puerto Rico, and US Possessions and foreign countries. Go to www.gsa.goc to get rates.
Are my business travel expenses for the cruise ship deductible?
Asked Monday, November 14, 2011 by an anonymous userCPA Answer:
If you travel by cruise ship for business the deductible cruise ship costs are limited to 2x the highest federal per diem rate for travel in the US. go to www.gsa.gov and click on per diem rates.
Is my margin interest from my brokerage account reported to the IRS ?
Asked Friday, January 26, 2001 by an anonymous userCPA Answer:
The IRS does not require brokerage firms to report margin interest on the form 1099-INT. Generally, the amount is reported on the statement you receive from your brokerage firm as margin interest paid on the non-reportable section of the Consolidated 1099.