WHEN YOU TRAVEL FOR BUSINESS -- ARE YOU USING "PER DIEM RATES" TODETERMINE MEAL DEDUCTION AMOUNTS?

If so, could you stand some GOOD news?
PER DIEM rates are based on the Government Fiscal
Year -- October 1 through September 30 -- NOT on
the Jan.1 to Dec. 31 calendar-year and Tax-Year.

Technically, for travel between Oct. 1 and Dec. 31,
2009, you can choose whether you want to use the
"old" FY 2009 rates or the "new" FY 2010 rates.

I say "technically" because you COULD use the 2009
rates, but you'd be an idiot if you did, because they
have INCREASED in the 2010 Per Diem schedule.

The amounts allowed for breakfast and lunch have
remained unchanged, but Dinner rates have
increased by $5.00, no matter where you are traveling
in the U.S., and the deduction for Incidentals has
increased from $3.00 to $5.00 per day.

"Incidental Expenses" include fees and tips to porters,
baggage carriers, bellhops, hotel maids, and shipboard
stewards and stewardesses, according to examples the
IRS provides.

The deductible rates for Meals and Incidental Expenses
(M&IE) depends on your business travel destination, and
sometimes also on time-of-year.

For high-cost locations, the total daily M&IE rate
is $71 for FY10. The rate for the lowest-cost
locations rate $46. And there are in-between rates.
How do you know how much you can claim?

FIRST go to www.gsa.gov/perdiem to see the M&IE rate
for the location you are traveling to.

THEN go to www.gsa.gov/mie to see the breakdowns of
Breakfast, Lunch, Dinner, and Incidentals deductions.

OH, BY THE WAY… If this all sounds "foreign" to you ----
See Ch. 9 of "Home Business Tax Savings, Made Easy!"
or review the recording of Session 2 of "Basic Essentials
Course for Home Business Tax Savings." (Both are
available at www.HomeBusinessTaxSavings.com )