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TP expense per diem

chapguy19
Level 4

Schedule C TP travels for business.

He receives a 1099-NEC from every location plus a 1099-NEC from the company that arranges for him the work that he does in every state.

I have expensed the actual lodging.  Can I also expense meals on a per diem basis? They have no receipts for meals.

Thanks in advance, Christopher

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1 Best Answer

Accepted Solutions
sjrcpa
Level 15

Correct, but the reimbursement should not be on the 1099.


The more I know the more I don’t know.

View solution in original post

8 Comments 8
TaxGuyBill
Level 15

Yes, if he was not reimbursed for meals, you can claim the Standard Meal Allowance if he was away from his Tax Home overnight.

But base his income on his records, not 1099s.

BobKamman
Level 15

Are you sure he has a tax home?  Itinerants can't claim either lodging or meals.  

chapguy19
Level 4

TP has a tax home here in WA.

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BobKamman
Level 15

What is the business connection with WA?  What are the personal connections? What are the duplicate expenses? 

chapguy19
Level 4

They maintain a residence here in WA. Actually, live with their parents. Return back here, between jobs.  

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chapguy19
Level 4

If he is reimbursed on a 1099-NEC for meals on a per diem basis (whatever rate that is for company), then he should be allowed to deduct the Standard Per Diem on his Schedule C.

He shouldn't have to pay income tax on a reimbursement.

Correct?

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sjrcpa
Level 15

Correct, but the reimbursement should not be on the 1099.


The more I know the more I don’t know.
BobKamman
Level 15

Sounds a lot like the case that Austin Yanke lost in Tax Court.  I would post the link but it's a mile long, and trying to shorten it didn't work.  Do some research on "tax home" before signing the return.  Since you're in the 9th Circuit, look at those cases in particular (although none of them seem very consistent).