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Schedule C - Department of Transportation Hours of Service Limits

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Schedule C - Department of Transportation Hours of Service Limits

Answer
In most cases, you can deduct only 50% of your business meal and entertainment expenses, including meals incurred while away from home on business. However, for individuals subject to the Department of Transportation (DOT) hours of service limits, that percentage is increased to 80% for business meals consumed during, or incident to, any period of duty for which those limits are in effect. Individuals subject to the DOT hours of service limits include the following:
  • Certain air transportation workers (such as pilots, crew, dispatchers, mechanics, and control tower operators) who are under Federal Aviation Administration regulations.
  • Interstate truck operators who are under DOT regulations.
  • Certain merchant mariners who are under Coast Guard regulations.
However, you can fully deduct meals, incidentals, and entertainment furnished or reimbursed to an employee if you properly treat the expense as wages subject to withholding. You can also fully deduct meals, incidentals, and entertainment provided to a nonemployee to the extent the expenses are includible in the gross income of that person and reported on Form 1099-MISC. See IRS Publication 535 for details and other exceptions.

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Views: 1299 Created on: Jun 15, 2013
Date updated: Dec 10, 2018

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