Bookkeeping and accounting services for Santa Fe and Northern New Mexico small businesses.

Call or Text: (505) 629-0818

How do I handle per diem expenses for trucking?

Per diem for trucking works differently than for most other businesses. The IRS gives transportation workers who are subject to hours-of-service regulations a higher deduction rate and specific daily allowances that simplify expense tracking.

When you’re on the road overnight for work, you can deduct a set daily amount for meals and incidental expenses without keeping every receipt. For 2024, the rate is $69 per day for travel within the continental United States. The rate adjusts periodically, so check with your accountant at the start of each year.

The bigger benefit is the deduction percentage. Most businesses can only deduct 50% of meal expenses. Transportation workers, including truck drivers, get to deduct 80%. That makes a significant difference over a full year of driving.

How you handle per diem depends on your employment status. Company drivers often receive per diem as a tax-free reimbursement on top of wages. This money doesn’t count as taxable income and won’t show up on your W-2. The company claims the deduction instead. Owner-operators claim the per diem deduction themselves on Schedule C, calculating total qualifying days, multiplying by the daily rate, and deducting 80% of that amount.

A qualifying day requires being away from your tax home overnight due to Department of Transportation hours-of-service requirements. Your tax home is where your main place of business is located, not necessarily where your family lives. Trucking companies running local routes where drivers sleep at home each night don’t generate per diem days. Long hauls where drivers sleep in the cab or at a truck stop do.

Tracking is simpler than you might expect. You need to document the dates you were away from home and the general business purpose. Individual meal receipts aren’t required when using the per diem method. Your logbook or electronic logging device already captures most of what you need.

You can choose actual meal expenses instead of per diem, but you have to pick one method for the year. Most truckers find per diem simpler and usually more beneficial. If you spend less than $69 per day on food, per diem gives you a larger deduction than actual expenses would.

The mistake most drivers make is not tracking qualifying days consistently throughout the year. By tax time, you’re trying to reconstruct months of travel from memory or incomplete records. A bookkeeper for small business owners in trucking can help you set up a system to capture every qualifying day without relying on memory when it matters most.

Santa Fe's Small Business Bookkeeper

The Next Step:
A Quick Conversation

Tell us about your business and what you're dealing with. We'll listen, ask a few questions, and give you a straightforward quote.

More Questions

What is bank reconciliation and why does it matter?

Bank reconciliation is comparing your internal records to your bank statement to make sure they match. It catches errors, detects fraud, and ensures your books reflect your actual cash position.

Read answer

How do I track income from multiple booking platforms?

Set up a separate income account for each booking platform in your accounting software and record gross revenue before fees are deducted. This lets you see exactly how much income came from each source and what you're paying in platform fees.

Read answer

Should I have a separate bank account for each rental property?

Not necessarily. If all your properties are in one LLC or your personal name, a single operating account with proper bookkeeping can track each property separately. But if properties are in different LLCs, you need to keep the accounts separate to maintain legal protection.

Read answer

What QuickBooks reports should I run monthly?

At minimum, run your Profit & Loss and Balance Sheet every month. Add Accounts Receivable and Accounts Payable aging reports to catch collection issues and upcoming bills before they become problems.

Read answer

Do I need to track mileage for rental property visits?

Yes, if you want to claim the deduction. Rental property mileage is deductible for trips like collecting rent, maintenance visits, and tenant showings. The IRS requires a log of each trip with date, purpose, and miles.

Read answer

What chart of accounts should a trucking company use?

A trucking company chart of accounts should separate fixed costs from variable costs and track expenses in ways that let you calculate cost per mile. Generic setups don't give you useful information about where money actually goes.

Read answer

Focus Point Accounting provides bookkeeping and accounting services for small businesses across Santa Fe and Northern New Mexico. Led by Stephen Vigil, a Certified Internal Auditor with 20+ years of experience. We bring an auditor's precision to your financial records.

Client Reviews

5-Star Rated Firm
  • Certified Internal Auditor badge
  • Intuit Bookkeeping Certification badge
  • QuickBooks Online Certification Level 1 badge
  • Gusto Payroll Certification badge
  • Santa Fe Chamber of Commerce logo
  • Better Business Bureau badge

© 2026 Focus Point Accounting LLC