MEALS & INCIDENTAL EXPENSES FOR BUSINESS TRAVEL, CAN BE DEDUCTED WITHOUT ANY RECORDKEEPING.

Here’s another tax tip from Ron Mueller: Author, Speaker and Business Success Coach

As a self-employed person, when you travel out of town on business, you have a choice of keeping records of your actual expenses for meals and incidentals, OR you can use the government “M&IE rates” - which require NO records.

From now through 2009 the Government Per Diem rates for “Meals & Incidentals” (”M&IE”) rate for will range from a low of $39/day to a high of $64/day.

What are “Incidental Expenses?”
Fees and tips to bellmen, baggage handlers, maids, etc; and transportation from your hotel for business meetings and meals.

How do I know what rate to use?
Go to www.gsa.gov/perdiem and click on the state you are traveling to. You will see all locations for cities and counties listed alphabetically.

NOTE: Special Rates apply to Arrival/Departure days. On your arrival day and your departure day, it is assumed that you won’t consume all three meals, so the “rule” is to take 75% of the normal daily rate for that city, for those days.

NOTE: You cannot use per diem rates for lodging
When you look at the per diem charts at gsa.gov/perdiem, you will notice a column of Lodging Rates. Those apply only to government employees and military. Self-employed people must obtain a receipt for all lodging, and the amount you can deduct is the amount you paid.

If you don’t spend much on meals when you travel, and you elect to use the per diem rates, your deductions could be greater than your actual expenses. And it’s perfectly legal.

That’s it for this issue of “Tax Tips You Can Bank On.”

Helping THOUSANDS to SAVE a BUNDLE,
Ron Mueller Author, Speaker and Business Success Coach
www.HomeBusinessTaxSavings.com