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keithbensette
Returning Member

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

 
2 Replies
MichaelMc
New Member

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


keithbensette
Returning Member

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

Thanks for answering. Let me be more specific. It is a trucking company,  so it is for meals and entertainment under dot rules.
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