Contract 1: I pay for restaurants 3 meals a day, contract pays no per diem (I assume I can deduct 100% of GSA M&IE rate, yeah? Yes, in this situation, you can deduct all 3 meals
Contract 2: I pay for restaurants 3 meals a day, contract pays $25 per diem, but it's not added to my 1099. If it is not added to your 1099, then it is tax free income, so you cannot take a deduction for that $25
Contract 3: I pay for restaurants 3 meals a day, contract pays $25 per diem, but it IS added to my 1099. Since it is added to your 1099, you can deduct it since you are being taxed on the income you are receiving for it.
Contract 4: Supplies 3 meals a day (catering), but occasionally I still go out to restaurants for a meal or two a day. You can deduct the meals eaten at a restaurant.
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