Fortunately, you’re allowed to take a tax shortcut with the IRS’s full blessing.
Strategy: Use the IRS-approved per-diem rate allowances for employee business trips in lieu of accounting for every donut and baggage-handling tip. The per-diem reimbursements are tax-free to employees — including you — up to the prescribed limits.
What’s more, your company can deduct the reimbursements in full. One exception: The 50 percent deduction limit on meal expenses still applies.
Where do the per-diem allowances come from? They’re actually the approved travel rates for U.S. government employees. But the IRS also allows companies to use them.
How do per-diems work?
Two per-diem rates are at your company’s dispos...(register to read more)
- Small Business Tax Deduction Strategies No matches