Meal Costs
"The standard meal allowance is the federal M&IE rate. For travel in 2013, the rate for most small
localities in the United States is $46 a day."
Functionally you can only take 50% of your meal costs:
((Daily Meal Cost $46) x days)/2
Generally $83 per a night for hotel.
SOURCE: http://www.irs.gov/pub/irs-pdf/p463.pdf
"The IRS has announced the special per diem rates for 2014-15 that taxpayers can use for substantiating the amount of ordinary and necessary business expenses incurred while traveling away from home. The new per diem rates will go into effect on Oct. 1.
IRS Notice 2014-57 includes special transportation industry meal and incidental expenses rates, the rate for incidental expenses-only deduction, and the rates and list of high-cost localities for purposes of the high-low substantiation method.
The special meals and incidental expenses rates for taxpayers in the transportation industry are $59 for any locality of travel in the continental United States and $65 for any locality of travel outside the continental United States.
The per diem rate for the incidental expenses-only deduction is $5 per day for any locality of travel inside or outside the continental United States.
For purposes of the high-low substantiation method, the per diem rates are $259 for travel to any high-cost locality, up from $251 last year, and $172 for travel to any other locality within the continental United States, which is a little higher than the $170 rate for 2013-14.
The amount of the $259 high rate and $172 low rate that is treated as paid for meals is $65 for travel to any high-cost locality and $52 for travel to any other locality within the continental United States.
Notice 2014-57 also lists the high-cost localities that have a federal per diem rate of $216 or more.
The rates are effective for per diem allowance for lodging, meal, and incidental expenses, or for meal and incidental expenses only, that are paid to any employee on or after Oct. 1, 2014, for travel away from home on or after that date.
In October 2011, the IRS provided the general rules for using a per diem rate (Rev. Proc. 2011-47) to substantiate the amount of ordinary and necessary business expenses for lodging, meals, and incidental costs paid or incurred while traveling away from home. Taxpayers using the rates and list of high-cost localities provided in Notice 2014-57 must comply with the rules in Rev. Proc. 2011-47.
A year later, the US General Services Administration published final regulations revising the definition of incidental expenses under the federal travel regulations to include only fees and tips given to porters, baggage carriers, hotel staff, and staff on ships.
“Transportation between places of lodging or business and places where meals are taken and the mailing cost of filing travel vouchers and paying employer-sponsored charge card billings are no longer included in incidental expenses,” the IRS wrote in Notice 2014-57. “Accordingly, taxpayers using per diem rates may separately deduct or be reimbursed for transportation and mailing expenses.”"
SOURCE: http://www.accountingweb.com/article/2014-15-diem-rates-travel-expenses-set-irs/223868
"2014-2015 Special Per Diem Rates
Notice 2014-57
SECTION 1. PURPOSE
This annual notice provides the 2014-2015 special per diem rates for taxpayers
to use in substantiating the amount of ordinary and necessary business expenses
incurred while traveling away from home, specifically (1) the special transportation
industry meal and incidental expenses (M&IE) rates, (2) the rate for the incidental
expenses only deduction, and (3) the rates and list of high-cost localities for purposes of
the high-low substantiation method.
SECTION 2. BACKGROUND
Rev. Proc. 2011-47, 2011-42 I.R.B. 520, provides rules for using a per diem rate
to substantiate, under § 274(d) of the Internal Revenue Code and § 1.274-5 of the
Income Tax Regulations, the amount of ordinary and necessary business expenses
paid or incurred while traveling away from home. Taxpayers using the rates and list of
high-cost localities provided in this notice must comply with Rev. Proc. 2011-47. Notice
2013-65, 2013-42 I.R.B. 440, provides the rates and list of high-cost localities for the
period October 1, 2013, to September 30, 2014.
Section 3.02(3) of Rev. Proc. 2011-47 provides that the term “incidental
expenses” has the same meaning as in the Federal Travel Regulations, 41 C.F.R. 300-
3.1, and that future changes to the definition of incidental expenses in the Federal
Travel Regulations would be announced in the annual per diem notice. Subsequent to 2
publication of Rev. Proc. 2011-47, the General Services Administration published final
regulations revising the definition of incidental expenses under the Federal Travel
Regulations to include only fees and tips given to porters, baggage carriers, hotel staff,
and staff on ships. Transportation between places of lodging or business and places
where meals are taken, and the mailing cost of filing travel vouchers and paying
employer-sponsored charge card billings, are no longer included in incidental expenses.
Accordingly, taxpayers using per diem rates may separately deduct or be reimbursed
for transportation and mailing expenses.
SECTION 3. SPECIAL M&IE RATES FOR TRANSPORTATION INDUSTRY
The special M&IE rates for taxpayers in the transportation industry are $59 for
any locality of travel in the continental United States (CONUS) and $65 for any locality
of travel outside the continental United States (OCONUS). See section 4.04 of Rev.
Proc. 2011-47.
SECTION 4. RATE FOR INCIDENTAL EXPENSES ONLY DEDUCTION
The rate for any CONUS or OCONUS locality of travel for the incidental
expenses only deduction is $5 per day. See section 4.05 of Rev. Proc. 2011-47.
SECTION 5. HIGH-LOW SUBSTANTIATION METHOD
1. Annual high-low rates. For purposes of the high-low substantiation method, the
per diem rates in lieu of the rates described in Notice 2013-65 (the per diem
substantiation method) are $259 for travel to any high-cost locality and $172 for travel to
any other locality within CONUS. The amount of the $259 high rate and $172 low rate
that is treated as paid for meals for purposes of § 274(n) is $65 for travel to any highcost
locality and $52 for travel to any other locality within CONUS. See section 5.02 of 3
Rev. Proc. 2011-47. The per diem rates in lieu of the rates described in Notice 2013-65
(the meal and incidental expenses only substantiation method) are $65 for travel to any
high-cost locality and $52 for travel to any other locality within CONUS.
2. High-cost localities. The following localities have a federal per diem rate of $216
or more, and are high-cost localities for all of the calendar year or the portion of the
calendar year specified in parentheses under the key city name.
Key city County or other defined location
Arizona
Sedona City limits of Sedona
(March 1-May 31)
California
Monterey Monterey
(July 1-August 31)
Napa Napa
(October 1-November 30 and February 1-September 30)
San Francisco San Francisco
San Mateo/Foster City/Belmont San Mateo
Santa Barbara Santa Barbara
Santa Cruz Santa Cruz
(June 1-August 31)
Santa Monica City limits of Santa Monica
Sunnyvale/Palo Alto/San Jose Santa Clara
Colorado
Aspen Pitkin
(December 1-March 31 and June 1-August 31)
Denver/Aurora Denver, Adams, Arapahoe, and
Jefferson
Steamboat Springs Routt
(December 1-March 31)
Telluride San Miguel
(December 1-March 31 and June 1-September 30)
Vail Eagle
(December 1-March 31 and July 1-August 31)
District of Columbia4
Washington D.C. (also the cities of Alexandria, Falls Church, and Fairfax, and the
counties of Arlington and Fairfax, in Virginia; and the counties of Montgomery and
Prince George's in Maryland) (See also Maryland and Virginia)
Florida
Boca Raton/Delray Beach/Jupiter Palm Beach and Hendry
(January 1-April 30)
Fort Lauderdale Broward
(January 1-March 31)
Fort Walton Beach/De Funiak Springs Okaloosa and Walton
(June 1-July 31)
Key West Monroe
Miami Miami-Dade
(October 1-March 31)
Naples Collier
(January 1-April 30)
Illinois
Chicago Cook and Lake
(October 1-November 30 and March 1-September 30)
Louisiana
New Orleans Orleans, St. Bernard, Jefferson
(October 1-June 30) and Plaquemine Parishes
Maine
Bar Harbor Hancock
(July 1-August 31)
Maryland
Baltimore City Baltimore City
(October 1-November 30 and March 1-September 30)
Cambridge/St. Michaels Dorchester and Talbot
(June 1-August 31)
Ocean City Worcester
(June 1-August 31)
Washington, DC Metro Area Montgomery and Prince George’s
Massachusetts
Boston/Cambridge Suffolk, City of Cambridge
Falmouth City limits of Falmouth
(July 1-August 31)
Martha's Vineyard Dukes
(July 1-August 31)
Nantucket Nantucket
(June 1-September 30)5
Montana
Glendive/Sidney Dawson and Richland
New Hampshire
Conway Carroll
(July 1-August 31)
New York
Glens Falls Warren
(July 1-August 31)
Lake Placid Essex
(July 1-August 31)
New York City Bronx, Kings, New York, Queens,
and Richmond
Saratoga Springs/Schenectady Saratoga and Schenectady
(July 1-August 31)
Tarrytown/White Plains/New Rochelle Westchester
North Carolina
Kill Devil Dare
(June 1-August 31)
North Dakota
Williston Williams, Mountrail, and
McKenzie
Pennsylvania
Philadelphia Philadelphia
(October 1-November 30 and March 1-June 30
and September 1-September 30)
Rhode Island
Jamestown/Middletown/Newport Newport
(October 1-October 31 and May 1-September 30)
South Carolina
Charleston Charleston, Berkeley and
(March 1-May 31) Dorchester
Texas
Midland Midland
Utah
Park City Summit
(December 1-March 31)6
Virginia
Washington, DC Metro Area Cities of Alexandria, Fairfax, and
Falls Church; counties of
Arlington and Fairfax
Virginia Beach City of Virginia Beach
(June 1-August 31)
Washington
Seattle King
Wyoming
Jackson/Pinedale Teton and Sublette
(July 1-August 31)
3. Changes in high-cost localities. The list of high-cost localities in this notice differs
from the list of high-cost localities in section 5 of Notice 2013-65.
a. The following localities have been added to the list of high-cost localities: San
Mateo/Foster City/Belmont, California; Sunnyvale/Palo Alto/San Jose, California;
Glendive/Sidney, Montana; Williston, North Dakota.
b. The following localities have changed the portion of the year in which they are
high-cost localities: Sedona, Arizona; Napa, California; Vail, Colorado; Fort
Lauderdale, Florida; Miami, Florida; Philadelphia, Pennsylvania.
c. The following localities have been removed from the list of high-cost localities:
Yosemite National Park, California; San Diego, California; Floral Park/Garden
City/Great Neck, New York.
SECTION 6. EFFECTIVE DATE
This notice is effective for per diem allowances for lodging, meal and incidental
expenses, or for meal and incidental expenses only, that are paid to any employee on
or after October 1, 2014, for travel away from home on or after October 1, 2014. For
purposes of computing the amount allowable as a deduction for travel away from home, 7
this notice is effective for meal and incidental expenses or for incidental expenses only
paid or incurred on or after October 1, 2014. See sections 4.06 and 5.04 of Rev. Proc.
2011-47 for transition rules for the last 3 months of calendar year 2014.
SECTION 7. EFFECT ON OTHER DOCUMENTS
Notice 2013-65 is superseded.
DRAFTING INFORMATION
The principal author of this notice is Neville R. Jiang of the Office of Associate
Chief Counsel (Income Tax & Accounting). For further information regarding this notice
contact Mr. Jiang at (202) 317-7007 (not a toll-free call)."
SOURCE: http://www.irs.gov/pub/irs-drop/n-14-57.pdf
SOURCE: http://www.irs.gov/pub/irs-drop/n-14-57.pdf
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