As a pilot, the meal allowance deduction is near and dear to me. I have always used the conservative method of doing my taxes verses risk taking. As a pilot, it is amazing to me the vast risks pilots take in taking deductions on their taxes (it would be lengthy for me to get into ALL the stories I have heard on what these pilots are deducting). My specific question, is last night a fellow pilot and I were discussing the travel for days you depart and return. Below I have copied and pasted it from publication 463 under meals. This fellow pilot stipulated that instead of using the 3/4 method for the depart and return days they were using method 2. Well, method 2 clearly says prorated using any method.....but they used the example listed under method
2, which says Jen could use any method...but then states for example, she could claim 3 days of the standard meal...... So in essence, this fellow pilot used FULL per diem rates for days you depart and days you return. I clearly believe the example might be incorrect. It says prorated everywhere. I personally prorated it at 3/4 method. Is this fellow pilot incorrect? Thanks in advance.
Travel for days you depart and return. For both the day you depart for and the day you return from a business trip, you must prorate the standard meal allowance (figure a reduced amount for each day). You can do so by one of two methods. Method 1: You can claim ¾ of the standard meal allowance.
Method 2: You can prorate using any method that you consistently apply and that is in accordance with reasonable business practice. Example.
Jen is employed in New Orleans as a convention planner. In March, her employer sent her on a 3-day trip to Washington, DC, to attend a planning seminar. She left her home in New Orleans at 10 a.m. on Wednesday and arrived in Washington, DC, at 5:30 p.m. After spending two nights there, she flew back to New Orleans on Friday and arrived back home at 8:00 p.m. Jen's employer gave her a flat amount to cover her expenses and included it with her wages. Under Method 1, Jen can claim 2½ days of the standard meal allowance for Washington, DC: ¾ of the daily rate for Wednesday and Friday (the days she departed and returned), and the full daily rate for Thursday. Under Method 2, Jen could also use any method that she applies consistently and that is in accordance with reasonable business practice. For example, she could claim 3 days of the standard meal allowance even though a federal employee would have to use Method 1 and be limited to only
2½ days.>>
>
>
>