[GNC] per diem expenses

[David Cousens]

Alan,

You will need to consult a tax accountant in your jurisdiction for this one so
do not construe the following as accounting advice. 

If the per diem amount is paid to you by the customer, it is likely it will be
classified as income by your tax authority and be taxable       - only your
accountantor tax office  can tell you if this is the case for you. 
 
If this is the case , then you would record it as follows: Debit your bank
account and credit a suitable income account by the amount of the per diem. 
Then when you buy food you would record that as a credit to the bank account and
a debit to an expense account for food.  Any excess of the per diem over what
you actually expend on food is income.

If it is not classified as taxable income by your tax authorities, then you
would need to create an income sub-account structure for non-taxable income and
a similar expense sub-account for non deductible expenditure and you would use
appropriate sub accounts under these in place of the income and expense accounts
in the taxable category.

David Cousens



On Thu, 2022-12-15 at 14:28 -0500, Alan W Jackson wrote:
> Hi everyone,
> 
> I am new to GNUCASH and am working on my chart of accounts and journals
> I am a owner op trucker and work with a single customer for now.
> I use the customers credit card for all business expenses such as gas, tolls,
> trailer and truck expenses
> Every week I receiver a payment document that details gross revenue, expenses
> down to net bank deposit
> My question is how to record the $64/$69 food per day per diem.
> The concept is to lower taxable income by the per diem amount, however it does
> not increase salary
> So is the debit to per diem expense, the credit to ??????
> What is GNUCASH recommended approach?
> Is this a tax return issue only?
> 
> 
> Alan W Jackson
> 706-816-2452
> 
> 
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