Team Driving ...Who's Watching

The wife and I are thinking about going to school or a company plan . Not sure f the best program. I think we could earn about $150 K per year. I know the IRS allows for 'per diem expensing at something like $50/ .I wonder if that would apply for both of us each day. Also lets say the wife gets a head ache while on HER shift , who's to know who is driving ? Its seems to me a team could practically run unlimited time . All answers would be appreciated.

The wife and I are thinking about going to school or a company plan . Not sure f the best program. I think we could earn about $150 K per year. I know the IRS allows for 'per diem expensing at something like $50/ .I wonder if that would apply for both of us each day. Also lets say the wife gets a head ache while on HER shift , who's to know who is driving ? Its seems to me a team could practically run unlimited time . All answers would be appreciated.

Just an FYI, never ever drive on another drivers log book. It is only a matter of time before you get caught. It's against the law to do so.

Ernie

I don't think he was intimating about "falsifying logbooks". More along the lines of proving to the IRS, with regards to taking the "standard per diem deduction".

In that case - it DOESN'T MATTER who is driving. Per diem is based on "Days Away From Home" - and as long as your logs prove you were NOT AT HOME, you are covered. As long as your LOGS show that you were NOT HOME - that's a "day away from home". This applies to 34 hour resets also - even though NO ONE is driving.

Keep in mind - in order to TAKE this deduction - you must also prove that YOU HAVE A HOME - as the deduction applies to expenses incurred when you are AWAY FROM IT. And there are also rules for home-time (as in, how much of a day counts as a full day and dumb crap like that).

If you and your wife are both driving, away from home - even together as a team - then the deduction would apply to BOTH of you. This can result in a pretty hefty amount of $$ being considered "non-taxable income".

For example - you are "on the road" 300 days a year. The "standard deduction" is $52 a day currently. $52 X 300 = $15,600. For a husband and wife team = this would be $31,200. If you both grossed $35K apiece - this means that only $38,800 of your income would be TAXABLE.

This usually ends up being better than itemizing expenses - because you don't have to keep track of receipts and the like. For example: the "standard meal deduction - is only 50%. If you both spent $50 a day TOGETHER on meals, you would only get to deduct $25 of it. With the "standard per diem" deduction - you take $104 a day.

Companies like to pay per diem, because it remove the responsible to pay EMPLOYMENT TAXES (as with W2 wage earners, employers pay 1/2 the FICA). This means paying a driver per diem, results in less $$ the company has to spend in "tax liability" for its employees.

Per Diem isn't "free money" or "additional income" (even though any $$ you don't have to pay taxes on nowadays IS LIKE FREE MONEY) - it is part of your pay - just taxed differently.

Rick