More Good News About the Per Diem Method

The last couple weeks I’ve been telling you how to keep receipts in order to document deductible business expenses. Here’s an email I received recently on this topic:

Hi Wayne,
I have really been enjoying your various articles and blogs.  Thanks for taking the time to share your wisdom on small business tax deductions.

I run a small business that requires a lot of travel throughout Central America.  The business expenses are always low as the region is still developing ($5 meals, $15 hotel stays) but I find it very difficult to get receipts and the bookkeeping burden is huge.

Are there ways (i.e. a Per Diem method), to avoid the hassel of keeping such extensive records?  Are the paper receipts necessary (most are just scribbles on generic receipt paper)?  I would LOVE if you had any interest in writing an article about this subject.  Please let me know.

Big fan,
Devin Welch
Barefoot Atlas Inc
Alexandria VA

The answers to Devin’s questions can be found here:

The General Rule: No Receipts, No Deductions. http://selfemployedtaxdeductionstoday.com/does-the-irs-require-receipts/

One Nice Exception to The General Rule: the Per Diem Method for Meals.
http://selfemployedtaxdeductionstoday.com/how-to-deduct-expenses-without-keeping-receipts/

But did you notice that Devin says he travels outside the USA.  Hmmm . . . How does that work? 

Good News — the Per Diem Method for meal expenses can also be used for travel outside the USA. You can find the rates here:
http://aoprals.state.gov/web920/per_diem.asp

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