Tax Q. regarding per diem

[druglord]

according to the standard gov meals allowances I calculated about $9500 for the year minus the company's $5300 for the year for a grand total deduction of $4200 for 2007.

Do these numbers sound about right?

company pays 1.40/hr per diem

 

[viper548]

Yeah, that's about right.

 

[druglord]

thanks for the help

 

[dbchandler1]

is there an online calculator to figure the standard expenses for TAFB?

 

[viper548]

You can look the per diem rates up on the internet or you can use a generic amount if $52/day domestic $57/day international. You can only use 75% on the first and last days of a trip. Nothing on locals.

 

[trainer8]

is there an online calculator to figure the standard expenses for TAFB?

The rate is a Standard Transportation worker rate published by the IRS. It is $52.

However, you can take the actual city MIE rate which may be higher. You gotta figure it out. IF you are doing all LAX/LGA/PHL RONs, your rate will be over the $52 rate. If your RONs are in Bumpass, VA, the stadard rate will be better. Which ever one you use, you have to use it for the whole year, not mix it up.

T8

 

[FishandFly]

So, by looking at the majority of mei rates asa goes to, they are consistantly $39 or $44. Are you saying that I can use $52 instead of that rate?

Next, APDL breaks up the daily amount on the last day of a trip. What do you all do for that last day?

Or, What do you do for a nap (standup/highspeed)?

 

[viper548]

So, by looking at the majority of mei rates asa goes to, they are consistantly $39 or $44. Are you saying that I can use $52 instead of that rate?

Next, APDL breaks up the daily amount on the last day of a trip. What do you all do for that last day?

Or, What do you do for a nap (standup/highspeed)?

Yep, you can use the $52 instead of the $39 or $44. You have to use the $52 for EVERY overnight if you choose that method. For the first and last day you multiply the allowable rate by .75 and use that. If you use the $52, then the first and last day would be $39.

This year I used the $52/57 method. Standups are 52*.75 for the first day and 52*.75 for the second day. $78 total.

 

[Aerosurfer]

Use EZperdiem.com..... Very simple to use


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If you itemize your taxes and you are a pilot or a flight attendant, EZPERDIEM.COM will provide you with the easiest way to get your per diem (standard meal expense) deduction. For most people it only takes about 15 to 30 minutes. Just log in, enter your overnights, pay, and print the results.

 

[viper548]

Here are some other deductions I have come up with.
-Van driver tips
-FAA physical
-Mileage, Hotel, Perdiem on my drive to/from upgrade training
-Daily mileage from hotel to training during upgrade
-Uniform items
-Job search fees (airlineapps, resumes, books, software)
-Batteries for headset/flashlight
-Headset
-Home phone (use only for faxing to my company)
-Part of home internet (online training)
-Part of cell phone
-Printer ink/paper (schedules, training bulletins, resume's)
-Cost of tax prep software
-Charitable donations
-Child daycare
-Mortgage

 

[twighead]

Here are some other deductions I have come up with.
-Van driver tips
-FAA physical
-Mileage, Hotel, Perdiem on my drive to/from upgrade training
-Daily mileage from hotel to training during upgrade
-Uniform items
-Job search fees (airlineapps, resumes, books, software)
-Batteries for headset/flashlight
-Headset
-Home phone (use only for faxing to my company)
-Part of home internet (online training)
-Part of cell phone
-Printer ink/paper (schedules, training bulletins, resume's)
-Cost of tax prep software
-Charitable donations
-Child daycare
-Mortgage

According to the IRS publication, tips are included in the daily allowance and shouldn't be separate. Not a big deal, but I though I'd put it out there

 

[Motown]

Yep, you can use the $52 instead of the $39 or $44. You have to use the $52 for EVERY overnight if you choose that method. For the first and last day you multiply the allowable rate by .75 and use that. If you use the $52, then the first and last day would be $39.

This year I used the $52/57 method. Standups are 52*.75 for the first day and 52*.75 for the second day. $78 total.

First, let me say that you can deduct anything you want to. The only time it is an issue is if you get audited... then you have to justify your deductions.

Having said that, I interpret the following differences in the IRS pubs from what you listed:

1. CDO (stand-up, highspeed, naps, illegals, whatever) are NOT allowed to be deducted at all because the trip does not include a DOT-required rest period away from your home.

2. Government employees must use 75% on the first and last days of the trip. Everyone else must use a single standard that you apply all year long. The example in the IRS Publication shows a non-government employee deducting 100% every day of the trip, including on the first and last days. That's what I do.

 

[SiuDude]

Isn't only 75% of a transportation employee's M&IE deductible? So, if you're using $52 a day, I though you could only deduct $39 of it. I'm kind of unclear on that.

 

[legalalien]

Isn't only 75% of a transportation employee's M&IE deductible? So, if you're using $52 a day, I though you could only deduct $39 of it. I'm kind of unclear on that.

You can deduct 75% of the difference between what the government allows and what your company reimbursed you. So if you had 100 days at the $52 rate and you received $4000 from your company in Nontax perdiem you could deduct 75%*(5200-4000) or $900.

I used experdiem and plugged the numbers in to Turbotax - it couldn't have been easier. Since I had trips through Europe and the Middle east as well as Domestic the actual rate calculated by ezperdiem was much higher than the standard for me.

 

[CLR2LAN]

So is regional per diem recorded and reported?

So you are comming up with your deduction based on number of days * STD Rate minus any company per diem. OK?

What would you guys be doing then if your per diem isn't recorded/reported? Corp/Charter ect...

 

[pookie]

I just bought a laptop and is that deductible since i use it to check my schedule and weather?

I also deduct my entire cell phone since i can prove that i was on reserve the entire year and it is a requirement for my job.

 

[regionalcap]

www.crewtaxes.com

avoid the hassle and let them do it right

'nuff said

 

[SiuDude]

You can deduct 75% of the difference between what the government allows and what your company reimbursed you. So if you had 100 days at the $52 rate and you received $4000 from your company in Nontax perdiem you could deduct 75%*(5200-4000) or $900.

I used experdiem and plugged the numbers in to Turbotax - it couldn't have been easier. Since I had trips through Europe and the Middle east as well as Domestic the actual rate calculated by ezperdiem was much higher than the standard for me.

Thanks, that makes sense. I let FLICA figure out my deduction last year, but this year I'll go it alone.

 

[regionalcap]

2. Government employees must use 75% on the first and last days of the trip. Everyone else must use a single standard that you apply all year long. The example in the IRS Publication shows a non-government employee deducting 100% every day of the trip, including on the first and last days. That's what I do.

You fall under the transportation category. You cannot deduct 100% every day. It has to be prorated. Read page 6 of this publication.

http://www.irs.gov/pub/irs-pdf/p463.pdf

 

[DoinTime]

Rule number 1: Never take tax advise from unknown people off the internet.

I just bought a laptop and is that deductible since i use it to check my schedule and weather?

I also deduct my entire cell phone since i can prove that i was on reserve the entire year and it is a requirement for my job.

Does your company require you to own a laptop? Do they not provide you with a means to check you schedule and weather at work? Do you use it for personal use? I also believe computers have to be depreciated.

Do you use your cell phone for personal use as well? I would venture so.

 

[John Pennekamp]

Just do like Snipes. Don't pay taxes.

 

[PCL_128]

1. CDO (stand-up, highspeed, naps, illegals, whatever) are NOT allowed to be deducted at all because the trip does not include a DOT-required rest period away from your home.

The IRS publications never say that it has to be a "DOT required" rest period, merely that there must be enough time to sleep. I don't know about you, but I sleep on stand-ups, so they qualify.

 

[trainer8]

I just bought a laptop and is that deductible since i use it to check my schedule and weather?

I also deduct my entire cell phone since i can prove that i was on reserve the entire year and it is a requirement for my job.

You may do that if those items are used soley for your employer. You get audited and they see you called your mom, your busted.

Your laptop can be totaly deducted, if you use it soley for your company. But...if you look up e-trade, do, email to your significant other, skype your friends, facebook, etc, you can only depreciate the value of the laptop.

You can depreciate it if it is a "convenience" for your company...in other words, your company "benefits" from you having the laptop...and you must prove that they do. (not hard to do, in most cases) Perfectly legal, but, you must document it with the appropriate IRS publications and forms.

Don't take my word for it. Contact a tax professional.

T8

 

[legalalien]

You fall under the transportation category. You cannot deduct 100% every day. It has to be prorated. Read page 6 of this publication.

http://www.irs.gov/pub/irs-pdf/p463.pdf

I think that you should reread the publication you quoted. Look at the second paragraph on the third column. Under Method 2 proration can be 100% if that is reasonable! The example they give shows 100% as a proration.

 

[No.W.]

My tax professional says that I can take 100% of the unreimbursed figure(NOT using the 75% for DOT employees). We chatted about that yesterday. He feels strongly that it is a fair and easily defendable deduction. His reasoning is that the deduction is for more than my meals and entertainment, but also for other expenses I incur as I travel(I guess since I don't deduct the cost of internet/laptop/100% cell phone/luggage etc....he has a point...we aren't just talking about ME&I here). I guess we'll see, eh? As far as the 75% for first and last days...I do that. It seems reasonable...and defendable. However, the document quoted above DOES state that you can take the 100% on that as well. This stuff is confusing...that's why it's good to pay someone to do your taxes.

 

[John Pennekamp]

As said before, anyone asking for or taking tax advice from a message board needs to have their head examined.

 

[SizzleChest]

...here's a spin. Let's say you are a SIM instructor and live in the town where you train in the SIM. This is NOT your domicile however. Can you deduct the per diem you get while sleeping in your own bed???

 

[regionalcap]

I think that you should reread the publication you quoted. Look at the second paragraph on the third column. Under Method 2 proration can be 100% if that is reasonable! The example they give shows 100% as a proration.

Yea. I see what you are talking about. I guess every pilot tax service that I have used has always used the 3/4 method for the first and last. It's too much of a headache to figure out what is right. That's why I let a pilot tax service figure it all out. I just tell them where I overnighted, and they do the rest.

 

[CLR2LAN]

I know i asked before...and before doing it i'd ask a professional...but just trying to get a feeling for this situation.

You work somewhere where your per diem is "under the table" Nothing but wages reported. Would you try and deduct your road expenses still?

 

[chperplt]

You probably don't make nearly enough money to worry about an audit....

Just deduct it all... Add in some Lifetime Learning Credit, a few charitable donations, toss in 10 or 20K in sales tax (or state tax) and keep playing with it until you're getting nearly every penny back.

They won't audit you.... I promise.


:nuts: