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 appropriate Federal per diem amount.
B)$75 per day.
C)All expenses up to $25 per day.
D)The per diem rate established by the state in which they live.
E)None of these.

Question

Quizplus · Accepted Answer

Under the deemed substantiation method, taxpayers can use the appropriate Federal per diem amount as a deduction for travel, meals, and incidental expenses. This amount varies based on the location and time of year of the travel, but is generally a set rate for expenses in that area. Taxpayers are not required to substantiate the amount spent on these expenses as long as they use the appropriate per diem rate.

Under the Deemed Substantiation Method of Accounting for Expenses, What