Per Diem Resets for Travelling Consultants

[Mister Imperceptible]

A colleague just informed me that he takes 5 weeks off every 365 days. Otherwise, the travel expenses he is compensated for (lodging, per diem, mileage, airfare, etc.) becomes taxable, instead of tax-deductible (I am a 1099). This is not insignificant. I called my CPA and I was forwarded to one of the assistants. “That’s news to me!” he said when I asked him about what I had heard. (What the fcuk am I paying you for?!?!)

Does anyone know the rules? Trying to peer through all the obfuscation.

[Mister Imperceptible]

I travel up to 250-300 days per year, no more. It may be that my colleague does not return home every weekend, and I do. I definitely have a “home,” which is hundreds of miles away.

[Mister Imperceptible]

Thanks Augustus.

Realistically, I doubt I could get enough time off work or time worked remotely to do anything about it anyway. It wouldn’t even be worth the lost income. Have to keep my client happy.

[Mister Imperceptible]

I think politically it would be very bad to take that much time off or work remote. I’m a consultant and not a senior employee with a long track record. I cannot jeopardize the gig for the sake of taxes.

[Mister Imperceptible]

Oh I am absolutely taking the deduction for 2017, the question is, moving forward can I continue to do so.

I’m new to being a 1099, so I was hoping to get help this year and perhaps the next with the new tax code, after which I can review what my CPA did for 2017 and 2018, and then use that as a template moving forward. I still intend to double check his work.