ME&I Form 2106

[taxdude057]

I have a married couple who are team drivers for a trucking company. The both drive equally and both are entitled to the standard ME&I per diem rate deduction. My question is since the are filing MFJ return, do i compute each deduction separately and the combine the totals for the deduction? The amount seemed so high, but they are on the road cross-country about 300 days a year. Please, any insight on this would be greatly appreciated. :rolleyes:

[TaxmannEA]

You would probably figure them separatly and combine.

You may have another problem however. The M&IE allowance is for expenses incurred while away fron the taxpayer's tax home. I have seen the IRS take the position that a trucker that spends a large number of days on the road has the truck and it's sleeper as their tax home as they spend almost the entire year living it it instead of a physical address. In that case, the meals and incidentals become normal living expenses and are not deductible.

Any coments on this please?

[taxdude057]

I would agree with the IRS if they were independent drivers. This couple drive for a company and only expense covered by their employer is fuel and maintance of the truck. All other incidental cost while on the road are at their expense. Would that not make the difference. I like to see them try to file a tax return from "Kentworth 90120!!" :lol:

[SunTaxMan]

The distinction between owner operators (independent contractors) and employees is irrelevant.

There is a greater consideration. Many of today's "trucks" are so much more than "just a truck" with a sleeper berth. There is expanded 'personal space' behind the Driver's seat. Personal space that often includes refrigerator, cooking facilities, upholstered chair(s), tv, entertainment center, ??? -- indeed LIVING space, not just sleeping space.

If this team "lives" in this truck, in much the same way that people "live" in a motor home, I can accept that this vehicle could easily be construed as their "tax home" - jeopardizing the overnight meal expense. Facts and circumstances are in control, not the mailing address on the tax return.

As far as "separate or combined" is concerned - each of these spouses is an employee - therefore each files a 2106 - each is entitled to the overnight meal expense deduction, IF, indeed either are, based on greater considerations.

One other thought comes to mind. I would "assume" (and you know what "ass u me" means?) that when they eat in a restaurant, they eat together. For tax purposes, I would encourage separate checks. On those days when their actual expense might exceed the standard per diem, they could (INDIVIDUALLY) use actual expenses for that day - but separate checks would be the documentation for that deduction.

My conclusion for your situation - you need to ask more questions, perhaps request a photograph of the "truck" they drive - a "picture might be worth MORE than a thousand words."

[taxdude057]

Thx Sun for the clarification! You the man!! :)

[GeneInAlabama]

Seems to me that if they maintain a home somewhere, it wouldn't matter how nice the truck is. Would a salesman's meal deduction be affected if he stayed at an Embassy Suites instead of a Motel 6?

[BulldogTom]

Seems to me that if they maintain a home somewhere, it wouldn't matter how nice the truck is. Would a salesman's meal deduction be affected if he stayed at an Embassy Suites instead of a Motel 6?

I think the issue is not the quality of the truck, but that the sleeper on the truck rises to the level of a "living space". If that is the case, then they "live" at that space, and not at their home. The "living space" now becomes the tax home. The deduction for business travel away from home is then lost, because they are not away from their "living space" home when they eat.

Interesting, and I can see the IRS making this point. On the other hand, they should vote, keep a drivers license, and hopefully and office in the home for their administrative duties at the place where they live the other 65 days per year to strengthen their argument that they are away from home on business.

Tom

Lodi, CA