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Business-travel expenses: Use the easy way

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Uncle Sam often examines deductible travel expenses through a magnifying glass. So, both employers and employees must meet strict record-keeping requirements or face the consequences. Of course, that can turn into a major hassle.

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)

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