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It is uncontested that petitioner maintained a log in which
he recorded his hauling trips, including time, place, and
business purpose. However, petitioner did not keep records of
the amounts of lodging expenses he incurred but instead relied on
the per-diem rates to compute the amount of his lodging expenses.
While section 4.01 of Rev. Proc. 93-50 authorizes the use of the
per-diem method to substantiate the amount of lodging, meal, and
incidental costs, this method of reporting is available only
where employers pay a per-diem allowance in lieu of reimbursing
the actual expenses an employee incurs while traveling away from
home. Therefore, petitioner’s expenses for lodging are not
included within this provision because he was self-employed.
Although petitioner, as a self-employed individual, is entitled
to use the per-diem method allowed under section 4.03 of Rev.
Proc. 93-50, that provision is limited only to meals and
incidental expenses. Accordingly, petitioner’s lodging expenses
are not deductible because such expenses have otherwise not been
substantiated pursuant to section 274(d). The Court finds it
unnecessary to address respondent’s contention that petitioner
did not in fact incur any lodging expense because petitioner
slept in the sleeper cab of his truck. Respondent, therefore, is
sustained on this issue.
Respondent agrees that petitioner was entitled to use and
properly applied the optional per-diem method of substantiating
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