Per Diem Deduction Question - Taxes

[BluDevAv8r]

On October 1, 2005, the GSA increased the FY2006 per diem rates substantially. Now even though they are for FY2006, does that mean I can use those rates for my 2005 tax return since they are effective 10/1/05? If this is the case, it will help people out significantly.

-Neal

 

[TransMach]

PerDiem Rates (GSA)

I'm having trouble understanding how that could help your personal tax situation ... help me out ... fill me in ... please ...

TransMach

 

[kevdog]

If you don't have a good accountant, now is the time!

 

[njcapt]

I am led to believe that you can't use the 2006 rates before their effective date. I just used the 2005 rates for all year.

 

[FearlessFreep]

There are a number of places that will assist you in calculating per diem rates. Last year I used Pro Diem, it was my first time using per diem deductions on my taxes. Paying the $50.00 was well worth it. You can save a lot of time using their services and they support a number of different airlines paysheet/scheduling outputs. You could spend a lot more time doing it yourself, I think that the $50.00 represents a good deal.

 

[Flash]

I used the new rates for the last 3 months of 2005. It's easy keeping track of it yourself, it only takes a couple of minutes per month. My total for 05 was somewhere around 1,100-1,200 times 70% or whatever the ratio is, comes out to a nice deduction.

 

[BluDevAv8r]

I used the new rates for the last 3 months of 2005. It's easy keeping track of it yourself, it only takes a couple of minutes per month. My total for 05 was somewhere around 1,100-1,200 times 70% or whatever the ratio is, comes out to a nice deduction.

I've since done more research and this is the correct way to do it.

-Neal

 

[BluDevAv8r]

I'm having trouble understanding how that could help your personal tax situation ... help me out ... fill me in ... please ...

TransMach

Check out www.prodiem.com and you will see how and why. It is a significant write off if your circumstances warrant it.

-Neal