Question

Under the deemed substantiation method of accounting for expenses, what is the maximum amount taxpayers are allowed as a deduction without being required to substantiate the amount of the expenses? a.The per diem rate established by the state in which they live. b.The appropriate Federal per diem amount. c.All expenses up to $25 per day. d.$75 per day. e.None of these choices are correct.

Answer 1

Answer:

b. The appropriate Federal per diem amount.

Explanation:

These special diem per rates for taxpayers would be used in substantiating the ordinary amount and important business expenses that are expense at the time when travelling to be done especially the special transportation industry meal and rates of incidental expenses, the deduction with respect to the incidental expenses, and the rates & high-cost localities list for the motive of the high-low substantiation method.