As a sole proprietor you don't pay yourself at all. You can deduct meals (At 50%) for genuine business travel (away from your tax home, which may or may not be a client site, overnight) as a business expense and can use the per-diem rates for those deductions.I'm asking the following as someone who is thinking about moving from corporate consulting to an independent role. I want to follow the law, but also want to understand what is appropriate:For 20 years this is how I did it as well. Never heard a peep from the IRS about it.I always use the standard daily allowances. Because I would never spend that much on food/hotels, it works out well for me.
- In corporate life, receiving the IRS per diem was a non-taxable bonus if I could keep expenses low (e.g., free hotel breakfast)
- As an independent consultant, am I entitled to pay myself a non-taxable per diem which I can expense from the company?
- I assume the per diem would need to be in line with GSA schedules -- is there anything else that would need to be considered?
Statistics: Posted by avalpert1 — Thu Sep 26, 2024 9:01 pm — Replies 18 — Views 1365