Meals / Tax Man

OK, I've switched jobs and now I am home every evening. I understand the tax rules for OTR drivers, but I am confused with what the tax laws are for drivers who are home every evening.

From what I understand, because I am not away from home I will not be able to take the standard meal deduction of $59.00/day or whatever the current amount is. What I don't understand, is what if any deductions I will be allowed to take for my meals while on the road. I am assuming since I can not take the standard deduction, I must save all my meal receipts.

Am I correct in assuming this, or do I not get to claim my meals at all because I am not on the road overnight?

I have searched the IRS website and I can not find where this is defined. If somebody knows where it is at, I would appreciate a link if possible. I really don't want to go by "he said/ she said", I would really like to see it in print from the IRS or other reputable source.

Thanks and happy trucking!!!!!!!!!!!!!!

Ok, I found some info, maybe someone can help me dicipher what exactly this means:

IRS Publication 463 Cat. No. 11081L Travel, Entertainment, Gift, and Car Expenses For use in preparing 2014 Returns

Page 5

Meals You can deduct the cost of meals in either of the following situations. It is necessary for you to stop for substantial sleep or rest to properly perform your duties while traveling away from home on business.

DOT requires us to take a 30 minute break during or at 8 hours of driving time, could this be considered "substantial"?

Page 12

Individuals subject to “hours of service” limits.

You can deduct a higher percentage of your meal expenses while traveling away from your tax home if the meals take place during or incident to any period subject to the Department of Transportation's “hours of service” limits. The percentage is 80%. Individuals subject to the Department of Transportation's “hours of service” limits include the following persons.

Interstate truck operators and bus drivers who are under Department of Transporta- tion regulations.

Because we are all subject to HOS limits, even without spending a night away from home, does this apply?

From the IRS Website For Travel Expenses:

Traveling Away From Home

You are traveling away from home if:

• Your duties require you to be away from the general area of your tax home (defined later) substantially longer than an ordinary day's work, and
• You need to sleep or rest to meet the demands of your work while away from home.
• This rest requirement is not satisfied by merely napping in your car. You do not have to be away from your tax home for a whole day or from dusk to dawn as long as your relief from duty is long enough to get necessary sleep or rest.

Example 2.

You are a truck driver. You leave your terminal and return to it later the same day. You get an hour off at your turnaround point to eat. Because you are not off to get necessary sleep and the brief time off is not an adequate rest period, you are not traveling away from home.

So no, you can not take the meal allowance and napping does not count as an "adequate rest period".

Factors used to determine tax home.

If you do not have a regular or main place of business or work, use the following three factors to determine where your tax home is.

• You perform part of your business in the area of your main home and use that home for lodging while doing business in the area.
• You have living expenses at your main home that you duplicate because your business requires you to be away from that home.
• You have not abandoned the area in which both your historical place of lodging and your claimed main home are located; you have a member or members of your family living at your main home; or you often use that home for lodging.

So your tax home will be your regular home unless you stay away from your home and near your place of business for extended periods.

You can deduct a higher percentage of your meal expenses while traveling away from your tax home if the meals take place during or incident to any period subject to the Department of Transportation's “hours of service” limits. The percentage is 80%. Individuals subject to the Department of Transportation's “hours of service” limits include the following persons.

• Interstate truck operators and bus drivers who are under Department of Transportation
• regulations.

Because we are all subject to HOS limits, even without spending a night away from home, does this apply?

No, it does not apply. I highlighted the area above that states you can only deduct meal expenses "while traveling away from your tax home".

Meals

You can deduct the cost of meals in either of the following situations.

• It is necessary for you to stop for substantial sleep or rest to properly perform your duties while traveling away from home on business.
• The meal is business-related entertainment.

The key again is "for substantial sleep or rest" meaning a full night's sleep, not a nap or required DOT break.

Well that sucks. I was thinking id be able to deduct the cost of a meal everyday, at least.

Great question and answer!

From the IRS Website For Travel Expenses:

Well.................... I do like bologna & cheese..................

Thanks for taking the time and providing the very detailed answer.