Per diem is understood to include the additional expenses incurred living away from home—basically having two residences. The GSA establishes per diem rates for hotels "based upon contractor-provided average daily rate (ADR) data of fire-safe properties in the local lodging industry."; this means that per diem varies depending on the location of the hotel—for instance, New York City has a higher rate than Gadsden, Alabama.
To qualify for per diem, your work-related business activity should be at least fifty miles from your tax home, and require an overnight stay. The IRS code does not specify a number of miles. However, based on IRS rulings, it is commonly accepted that a distance of 50 miles as a reasonable distance to justify payment of per diem allowance.
If the taxpayer anticipates employment away from home to last less than 1 year, then all the facts and circumstances are considered to determine whether such employment is "temporary". If the taxpayer anticipates employment to last (and it does in fact last) between 1 and 2 years, the I.R.S. presumes that the employment is "indefinite". The taxpayer may rebut the presumption by demonstrating certain objective factors set forth in the revenue ruling. For employment with an anticipated or actual stay of 2 years or more, the I.R.S. holds that such employment is "indefinite", regardless of any other facts or circumstances.
Any tour of duty adding up to over 500 miles counts as a per diem. You can claim up to the per diem limit without receipts. Note also that as long as you keep a record of the amount spent and the date of the expense, then you do NOT need a receipt for any expense less than $75.
The US military pays its members per diem in accordance with the Joint Federal Travel Regulations. According to these regulations, the first and last days of travel are paid 75% of the daily General Services Administration rate, while all other days of travel receive the full rate. The JFTR also states that lodging taxes for CONUS and non foreign OCONUS are a reimbursable expense but requires a receipt. The JFTR also follows the 'expenses below $75 do not require a receipt' rule, although local disbursing officers may question charges they feel may be false.
The US Government also allows federal travelers to purchase a home at the temporary duty location and claim the allowable expenses of: mortgage interest, property taxes and utility costs actually incurred.
Per diem is also used in contracts to specify penalty accruals. Such wording would be found in reference to the expected closing date for a Real Estate contract, typically compensating a seller for a buyers lack of expedience.
Category:Employment Category:Latin words and phrases
de:Verpflegungsmehraufwand fr:Per diem fi:Päiväraha sv:TraktamenteThis text is licensed under the Creative Commons CC-BY-SA License. This text was originally published on Wikipedia and was developed by the Wikipedia community.
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