Can you mix and match days on the same trip? What I mean is can you take actual cost for meals hours on some of the days and do the per diem rate on other days during the same trip?
When are the gsa prices going to go up to compensate for inflation? Also, if I start an llc for travel nursing contracts, I can't pay myself lodging perdiems?
Hi Mark, would love if you could make sense of this question for me: Let's say I'm a self-employed sole proprietor, working as an independent contractor. I go to NYC on a job that lasts a month. I'm payed $10,000 for the month for my work. I also eat food. Let's say I spend $100 a day for $3000 worth of food for the month. In turn, I bill the client $10,000 for the work and $3,000 for the food, for a total of $13,000. I receive a 1099-Misc in the amount of $13,000 for non-employee compensation. How would I handle the meals write-off in this situation? If I put down $3000 in the meals deduction, then that is subject to the 50% reduction, then I think I am essentially paying taxes on $1500 worth of food I ate that is now listed as income? For example, I would deduct $1500 from the $13,000 for the meals deduction and pay taxes on $11,500. If I were in something like a 32% bracket it seems like now I'm paying an extra $500 in taxes for my meals. Can you help? I've been trying to figure this out for years.
I'm confused. In the scottsdale example, you came up with meals costing $115, and said you should take the actual expenses as your write off rather than the per diem rate. Aren't you only allowed to take 50% of that $115 figure? Therefore 115/50 = $57.5, which yes IS higher than the per Diem of $56, but just barely. Is that correct? Thanks for the vid by the way.
Thank you! I'm a touring musician and this clip is super helpful in figuring out the per diem.
Glad i Am here
Can you mix and match days on the same trip? What I mean is can you take actual cost for meals hours on some of the days and do the per diem rate on other days during the same trip?
To get your question answered, please submit it to podcast.mainstreetbusiness.com/ thank you!
So glad I found this channel, thanks for the details and making taxes fun Mark!!
You are so welcome!
This good asf
🤣 The Sugar daddy/baby reference in Scottsdale. Ofcourse is tax deductible. Hilarious tax nerd humor
When are the gsa prices going to go up to compensate for inflation? Also, if I start an llc for travel nursing contracts, I can't pay myself lodging perdiems?
Great stuff Mark! I've definitely been slacking on this. Thanks for sharing.
Do these get written down on Line 19 on the 1190S?
Hi Mark, would love if you could make sense of this question for me:
Let's say I'm a self-employed sole proprietor, working as an independent contractor.
I go to NYC on a job that lasts a month. I'm payed $10,000 for the month for my work. I also eat food. Let's say I spend $100 a day for $3000 worth of food for the month.
In turn, I bill the client $10,000 for the work and $3,000 for the food, for a total of $13,000.
I receive a 1099-Misc in the amount of $13,000 for non-employee compensation.
How would I handle the meals write-off in this situation?
If I put down $3000 in the meals deduction, then that is subject to the 50% reduction, then I think I am essentially paying taxes on $1500 worth of food I ate that is now listed as income?
For example, I would deduct $1500 from the $13,000 for the meals deduction and pay taxes on $11,500.
If I were in something like a 32% bracket it seems like now I'm paying an extra $500 in taxes for my meals.
Can you help? I've been trying to figure this out for years.
I'm confused. In the scottsdale example, you came up with meals costing $115, and said you should take the actual expenses as your write off rather than the per diem rate. Aren't you only allowed to take 50% of that $115 figure? Therefore 115/50 = $57.5, which yes IS higher than the per Diem of $56, but just barely. Is that correct? Thanks for the vid by the way.
It's 50% either way. So if you took the per diem of $56, you're only allowed to actually write off $28.
What about tax planning for people that generate $500 income per hour?
I only got 30 per diem...
Is this tax planning for business owners that make only $60k a year?
Appreciate this!
Thank you for the info bro but.... a rockstar and a banana for BREAKFAST??! 💀
It sounds easier to not even use it lol
Taixi lmao