Re: Tax treatement of expense reimbursements for meals

In article <f79a1c89-bf45-4dee-9c2a-3bd3b6c660bf@xxxxxxxxxxxxxxxxxxxxxxxxxxxx>,
mcmarya <mcclellands8@xxxxxxxxx> wrote:
I am also an independent contractor reimbursed by my client at 100% of
expenses when receipts are submitted. At the client's request, I
stayed at local hotels in order to be on site for assignment so most
of my "travel" expenses are from within my tax home. My 1099 includes
all the reimbursement amounts and they are more than my fees for work
performed for 2007 (there was a mixup on my actual fees and most were
paid in 2008). I am concerned about being able to deduct these
expenses on my schedule C at 100%. Even if I could do so
legitimately, I am concerned about being audited.

There seems to be disagreement among tax professionals about whether
or not the reimbursements should have been included on my 1099 and
whether the 50% rule applies to the meals for which I was reimbursed.


You deduct the costs you actually paid for in 2007 on your 2007 sch C.


You will have to decide if these are 50% meals or 100% by following
the rules for meal deductions.


Since the 2008 funds were not paid until 2008, if you are a cash
basis taxpayer they go on your 2008 Sch C.


Nothing at all complicated here.


--


ArtKamlet at a o l dot c o m Columbus OH K2PZH
.

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