Question

As a LLC (sole proprietor)how do I deduct the per diem I paid to my employee?

Forum|Forum|7 years ago
June 4, 2019
1 reply
0 views

No text available

TurboTax Self Employed Android

Employee

That will depend on what the per diem is intended to cover. If it is for travel expenses only, it should be assigned to the Travel line on Schedule C (Form 1040), line 24a. If it is intended to cover meals alone, it should be assigned to line 24b. If it covers both meals and travel, you must make a reasonable allocation between the two lines.

Please keep in mind the 50% limitation on the deductibility of business meals.

For more information, please refer to:

IRS Pub. 463 Travel, Gift, and Car Expenses