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Financial Planning / Tax Strategies
|Subject: Re: Can my LLC pay me per diem?||Date: 2/23/2001 7:19 PM|
|Author: JFour||Number: 47062 of 119689|
This year I started a LLC in PA.
I am a Pa resident.
I spent almost all of my time traveling away from home.
Can I fill out an expense report and submit it to my company specifying the maximum amount as specified in form 1542?
Prior to October 1, 2000 you were note allowed to use the per diem substantiation method for your travel expenses at all, due to the related party rule (ownership of greater than or equal to 10% of the payor).
After 10/01/2000, you are allowed to use the per diem method for meals and incidental expenses only (not lodging expenses).
See the Rev Proc 2000-9 for the rules from 1/1/2000 through 9/30/2000, and Rev Proc 2000-39 for after 10/01/2000. You may find these on the IRS website (sorry, I don't have that address handy to post here).
You must subtantiate your travel expenses by means of a log and by receipts; estimates are not allowed after 1984.
Sorry 'bout the bad news.
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