Just as it has standard mileage rates, the IRS has standard per diem rates for daily travel costs. There are situations where you might benefit from the mileage rates and the travel per diems.

If you spend very little money on meals when you travel, then the standard meal allowance can give you deductions in excess of what you spend.

If you spend an average amount or more, you will find that the travel per diem rates are a drain on your checkbook.

Some taxpayers opt for the standard meal allowances instead of actual costs because they believe the IRS has lower documentation requirements when you use the allowances. For most small business taxpayers, the documentation is pretty much the same, as you will see in ... Log in to view full article.