For an LLC Business Partnership, can a per diem rate be used for travel vs. actual expenses.
Hi, Don, and thanks for the question. If you have a Limited Liability Company or Business Partnership, you can use a per diem rate to reimburse employees for business travel if you prefer. Per diem reimbursements will not be taxable to your employee, if they provide an expense report. However, some expenses like business meals are only 50% tax-deductible. If you’re traveling for your own business and trying to manage your own deductions, you can’t claim a deduction for business travel that’s more than the actual expenses incurred.
I hope this helps. We have a great article on travel expenses and per diem reimbursements – you can check it out here if you’d like to learn more: https://fitsmallbusiness.com/expense-report-form-policy-template/
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