cougarblue
Well-known member
- Joined
- Sep 9, 2005
- Posts
- 58
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The IRS language states that you have to use a "consistent" method to calculate your per-diem. I also used the $52 figure (dont know if it is right). Then I only multiplied by the number of hotels I stayed in (4 day trip = 3 nights). then multiply by 52 and in your case I got $6240. subtract the 4000 they paid you and you come up with a 2240 deduction.
If you want to get closer to an actual number take that extra day that you subtracted from the four day and multiply it by half of the IRS $52 standard. In your case 40 X 26 = 1040 then add that to your 6240 and get 7280.....Subtract the 4000 they paid you and use a 3280 deduction.
I am not an accountant and have done this method for four years now without incident. but from what I read in the tax code and from talking to other pilots about this i think the key is being consistant from year to year....you dont want to raise any flags on your return by having big differences from year to year.
Hope this helps....cheers
Yes.If you use Turbo Tax, does it calculate the 80% difference for you????