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Megan C
Megan C, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 15587
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
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I have my home in Illinois and last year,2012, I traveled to

Resolved Question:

I have my home in Illinois and last year,2012, I traveled to Oklahoma City to fulfill a contract as corp to corp with my client.

I have two concerns:
1. I traveled home once a month for six months. Is the mileage deductible.
- The contract location was approx 500 miles one way. approx 1000 miles round trip.
2. Also, am I able to claim per diem for the weekends whether I traveled or not.

Please provide any links or documentation which support your conclusion.

Thanks
Submitted: 1 year ago.
Category: Tax
Expert:  Megan C replied 1 year ago.

MyVirtualCPA :

Thanks for asking your question! I'm sorry to hear about your tax issue and I'm going to try my best to help you understand or resolve it.

MyVirtualCPA :

Is the duration of your time in Oklahoma City going to be less than one year total?

MyVirtualCPA :

If so, this can be a temporary work assignment, and as such your travel to and from that location would be tax deductible.

MyVirtualCPA :

http://www.irs.gov/taxtopics/tc511.html

MyVirtualCPA :

Also, you can only claim per diems on days you are on business - you can't claim a per diem for personal time

Customer:

"Also, you can only claim per diems on days you are on business - you can't claim a per diem for personal time" - Even if the distance is inconvenient to travel every weekend?

Customer:

Including have to move everything out of my room every weekend?

MyVirtualCPA :

When you're on personal time, it's not a business expense

MyVirtualCPA :

You can deduct your expenses for business purposes

Customer:

What if I am doing training on my on time?

Customer:

on the weekend

MyVirtualCPA :

Originally Posted by IRS Publication 17


Going home on days off. If you go back to your tax home from a temporary assignment on your days off, you are not considered away from home while you are in your hometown. You cannot deduct the cost of your meals and lodging there. However, you can deduct your travel expenses, including meals and lodging, while traveling between your temporary place of work and your tax home. You can claim these expenses up to the amount it would have cost you to stay at your temporary place of work.

If you keep your hotel room during your visit home, you can deduct the cost of your hotel room. In addition, you can deduct your expenses of returning home up to the amount you would have spent for meals had you stayed at your temporary place of work.
MyVirtualCPA :

Does the clip from publication 17 make sense?

Customer:

For the most part but if I use the out of town per diem rate don't I get to deduct the full 8hr day per diem instead of just the cost of the hotel? I prefer to use per diem.

MyVirtualCPA :

Correct - you can only deduct up to the cost of what it would have been to stay at your temporary work location

Customer:

So tell me if this is correct:

MyVirtualCPA :

okay

Customer:

Monday 10hrsxperdiem

Customer:

Tuesday 10hrs x perdiem

Customer:

Wedmesday 10hrs x perdiem

Customer:

thursday 10hrs x perdiem

Customer:

Friday

Customer:

Friday 8hrs x perdiem <no work no travel

Customer:

Saturday 8hrs x perdiem <no work no travel

Customer:

Sunday 8hrs x perdiem <no work no travel

Customer:

Frdiay Saturday & Sunday is the weekend for me.

MyVirtualCPA :

You wouldn't take the per diem on the days you are on your personal time

MyVirtualCPA :

yes, and you could deduct your cost of traveling on Friday and Sunday to and from your home

Customer:

So Monday,Tuesday,Wednesday,Thursday are all valid per diem days because they are work days.

MyVirtualCPA :

That is correct

Customer:

If you keep your hotel room during your visit home, you can deduct the cost of your hotel room? by per diem or actual cost of room for travel days?

MyVirtualCPA :

Actual cost of the room

Customer:

Okay clear on that.

MyVirtualCPA :

Okay great

Customer:

But

Customer:

Is there any way through training or managing the business on the weekend that I would be able to take per diem as well?

MyVirtualCPA :

No, you are still on your personal time. You would still be traveling home.

Customer:

But if I am an llc business and I do work for the business why does that become personal time?

MyVirtualCPA :

You're not working for someone else? If you are working, at home, you would not be traveling and therefore would not take the per diem

MyVirtualCPA :

You are traveling when you are away from home. When you are home, you are not traveling - therefore even if you work while you're home you can't deduct the per diem, because you are home

Customer:

But if I am an llc business and I do work for the business in the out of town location, isn't that per diem on the weekend?

MyVirtualCPA :

Yes, if you are in the out of town location - you can deduct that. But not if you are home

Customer:

How would I claim per diem on the weekend in such a case. For the hours I worked?

MyVirtualCPA :

while you are home?

MyVirtualCPA :

Or while you are away?

Customer:

Weekend

MyVirtualCPA :

You cannot claim the per diem while you are at home

Customer:

out of town

MyVirtualCPA :

Then you claim it just as you would through the work week

MyVirtualCPA :

It's no different because it's the weekend

Customer:

By the hours worked?

MyVirtualCPA :

Per diem = per day - it has nothing to do with hours worked

Customer:

I'm sorry I am still a little confused

Customer:

I am only speaking of out of town

MyVirtualCPA :

Correct - when you deduct a per diem you get one daily rate. The rate is the same regardless of how long you work or not

Customer:

Can I claim per diem every day I am out of town including the weekend.

MyVirtualCPA :

Yes

Customer:

One last question

MyVirtualCPA :

Okay

Customer:

If I work as a W2 employee and I am still an llc and they cover 5 days of per diem, Mon-Fri, can I still use a 7 day per diem.

Customer:

Including Sun-Sat

MyVirtualCPA :

If you are working, yes

Customer:

Does this mean I have to work all 7 days as well?

Customer:


<div class="JA_chatMsgAuthor"Customersays:

7:07 AM



Can I claim per diem every day I am out of town including the weekend.






MyVirtualCPA says:

7:07 AM



Yes



Customer:

"




<div class="JA_chatMsgAuthor"Customersays:

7:07 AM



Can I claim per diem every day I am out of town including the weekend.






MyVirtualCPA says:

7:07 AM



Yes"



MyVirtualCPA :

I'm sorry I didn't see your last response

Customer:

Okay I am going to summarize what we spoke about and you tell me if i have correct, OK?

Customer:

1. If I travel to home I expense food, travel & lodging when I am on the road

Customer:

2. If I travel to home I can still deduct the cost of my hotel room

Customer:

3. For every day I am out of town and staying at a hotel, Sun-Sat, I claim 7 days of per diem whether I work or not.

MyVirtualCPA :

That is correct

Customer:

Especially number 3, there are no gray areas here, right.

MyVirtualCPA :

No

MyVirtualCPA :

Is there anything else I can assist you with? If not, please rate my response as "excellent" so that I may receive credit for assisting you today

Customer:

Okay, that's it. Thanks for your responses regarding my concerns.

MyVirtualCPA :

No problem. Please take a moment to rate my response as "excellent" so that I may receive credit for assisting you today

Customer:

Do I rate Excellent before I save & Exit?

MyVirtualCPA :

Yes

Megan C, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 15587
Experience: Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
Megan C and 2 other Tax Specialists are ready to help you
Expert:  Megan C replied 1 year ago.
Rick,

Thanks for your positive rating. Please come back and visit MyVirtualCPA for any of your tax, finance, or social security needs. It was a pleasure working with you today

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Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level