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deduction credits, a section on “Section 529” plans and frequently asked questions, as well as changes that will be in effect during 2009 and 2010.
Per Diem Meal Allowance Increase
Most IBOs are aware that when you travel away from home, the IRS allows you to take a
per diem
meal allowance deduction without keeping receipts.
Effective October 1, 2009, that daily
per diem
has increased to $52 per day per person in most cities and $65 per day in high cost areas. The IRS has a chart (Section 5) on its
website
telling you which cities qualify as “high cost areas”.
If your spouse is your partner in the business and travels with you for business purposes, you are entitled to two
per diems
per overnight stay.
Please remember that meal and entertainment deductions are limited to 50% of the actual amount including
per diem. Therefore, a $52
per diem
is good for a $26 deduction.
Joe
Learn more about
Joe DePetris, Jr., and IBO tax return preparation
and tax issues at
IBO Bookkeeping 101.
Find more Tax Tips for IBOs from Joe DePetris, Jr., CPA.
This article is provided as an
educational resource for your guidance, and is
strictly informational. It does not constitute
legal, accounting, or other professional
counsel. Nothing included herein implies a
recommendation by the author, the
IBOA International, or
Amway Global, of any course or method of
regulatory compliance. Readers and users who
intend to take, or refrain from taking, any
action based on information contained herein
should first consult with their qualified tax
advisor, preferably a C.P.A., or appropriate
regulatory authorities.
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