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Days Out Records
IRS meal allowance for truck drivers in the
United States.
Canada Information.
DDL includes the 'Days Out' record as a convenient way to record 'Leave Home'
and 'Arrive Home' dates and times so the calculation of the total number of days
'away from home' for tax purposes is very convenient. In particular the
applicable section from the IRS publication 463 is quoted below.
IRS Publication 463 Cat No. 11081L Travel, Entertainment, Gift, and Car
Expenses. From page 6 (Tax year 2001).
Download this Publication here --
http://www.irs.gov/pub/irs-pdf/p463.pdf
Amount of standard meal allowance.
Start Quote---> "Special rate for transportation workers.
You can use a special standard meal allowance if you work in the transportation
industry. You are in the transportation industry if your work:
1) Directly involves moving people or goods by airplane, barge, bus, ship,
train, or in truck, and
2) Regularly requires you to travel away from home and, during any single trip,
usually involves travel to areas eligible for different standard meal allowance
rates.
If this applies to you, From Jan 1-2005 to Sep 30, 2005 you can claim a $41 a day standard meal allowance ($46
for travel outside the continental United States) this is and from Oct 1, 2005 to
Dec 31, 2005 you can claim $52 a day standard meal
allowance ($56 for travel outside the the continental United States).
Special Note 1 Truck drivers who are
subject to "hours of service" limits read the chart below. Special Note
2: Using the special rate for
transportation workers eliminates the need for you to determine the standard
meal allowance for every area where you stop for sleep or rest. If you choose to
use the special rate for any trip, you must use the special rate (and not use
the regular standard meal allowance rates) for all trips you take that year.
Travel for days you depart and return. For both the day you depart for and the
day you return from a business trip, you must prorate the standard meal
allowance (figure a reduced amount for each day).
Meals when subject to “hours
of service” limits.
You can deduct 70%
(2005) of your
business-related meal expenses if
you consume the meals during or
incident to any period subject to
the Department of Transportation's “hours
of service”
limits. You apply this 65% limit
before you apply the
2%-of-adjusted-gross-income limit.
In 2003 you can claim 65%
In 2004 this will increase to 70%
In 2006 this will increase to 75%
In 2008 this will increase to 80 %
Example:
Driver was away from home 200 days
from Jan 1, 2003 to Sep 30, 2005 and
75 days from Oct 1, 2005 to Dec 31,
2005. All days were in the
United States. Using this
information you can do the math.
200 X $41 = $8200 (from Jan 1,
2005 thru Sep 30, 2005)
75 X $52 = $3900
(from Oct 1, 2005 thru Dec 31, 2005)
Total= $12,100 X 75% = $9,075
this is what you would be allowed to
claim. **This is before you apply
the 2% -of-adjusted-gross-income
limit.
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You can do so by one of two
methods.
•Method 1: You can claim 3 /4 of the standard meal allowance.
•Method 2: You can prorate using any method that you consistently apply and
that is in accordance with reasonable business practice." <--- End
Quote.
Based on the examples that follow this description of the Methods 1 and 2.
If you are away from home any part of the day, it is acceptable business
practice to count that day as a full day for meal allowance if you so wish.
So I don't know why IRS lists Method 1 or Method 2, because it would be foolish
not to count the days leaving and arriving home as full days away from
home. Weird.... So to maximize the benefit, you should
record 'leave home' at the start of the log day in which you leave (midnight
normally), and similarly record 'arrive home' at the end of the log day when you
arrive home (midnight at end of log day).
Download the IRS Pub 529 from
http://www.irs.gov/publications/p529/ar02.html#d0e1703
Requires free Acrobat Reader http://www.adobe.com
Version 7 is available.
Canada Information:
Please visit the following site to get the most up to date
information on Canada.
Canadian drivers are subject to tax rules as outlined in the following
publication:
http://www.ccra-adrc.gc.ca/E/pub/tp/ic73-21r8/ic73-21r8-e.html
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