dale <none[at]none.com> wrote:

- quote -

50%

- quote -

Well, when your customer files their taxes, if they are
doing so on a Schedule C they'd be subject to the same 50%
rule as you are for those meals you ordered from room
service.

Steve

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >

- quote -

I am not a tax pro like so many folks here but I am a
technology consultant and used to operate as a Sole
Proprietor. (I am now organized as a one-employee C
Corporation.)

If you file an expense account for your trip with the
company that hired you and that expense account itemizes the
cost of the individual meals, then the funds received for
reimbursement of those meals is 100% deductible. That was
the advice of my accountant. And, most of the companies I
worked for when I was a Sole Proprietor did not include the
meal reimbursement on my 1099. In those few cases where the
1099 did include incorrect amounts, such as reimbursed
meals, the advice of my accountant was that I should report
the correct amount of income on my Schedule C and rather
than the amount listed in the 1099. We had the data to
support my Schedule C entries in case the IRS ever asked me
to explain the difference between the amounts reported on
the Schedule C and the various 1099's.

Finally - one reason why a company might include the
reimbursed meals on your 1099 is that if they do the meals
are 100% deductible to them, while if they do not, I believe
the meals are only 50% deductible to them.

- quote -

No loans, but reimbursed expenses - which are not taxable
income.

--
Vic Roberts
Replace xxx with vdr in e-mail address.

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >

Hi, I'm an independant contractor, and I travel for work,
staying in hotels which the company hiring me pays for.

When I get room service meals, the charge goes directly to
the company that hired me.

However, if I eat meals out at a restaurant, I pay for those
myself, and then later, get reimbursed by the company that
hired me.

The company has reported those meal reimbursments on my 1099
as income, so when I deduct the meal totals, which are over
$2000, are they 100% deductible, or 50% deductible?

My thinking is that these meal reimbursments should be
considered "loans" or travel expenses, and written off at
100%,

It doesn't seem right to me that if the company buys the
meal drectly, it's not considered income, but if I pay for
it and get reimbursed, the reimbursment is now considered
taxable income, and not 100% deductible because it was for
meals.

Thanks for any answers.

Moderator:
Life was not meant to be fair and the only time taxes are
logical is when Congress is asleep at the switch.

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >