The updated rates are effective for per diem allowances paid to any employee on or after Oct. 1, 2014, for travel away from home on or after that date, and supersede the rates in Notice 2013-65, which provided the rates for Oct. 1, 2013, through Sept. 30, 2014.Incidental expenses.igh-low substantiation method. For purposes of the high-low substantiation method, the per diem rates are $259 for travel to any high-cost locality and $172 for travel to any other locality within the continental United States.
In general, you can deduct only 50% of your business-related meal and entertainment expenses. (If you are subject to the Department of Transportation's â hours of service â limits, you can deduct 80% of your business-related meal and entertainment expenses.our meal or entertainment expense is not subject to the 50% limit if the expense meets one of the following exceptions. 1 â Employee's reimbursed expenses. If you are an employee, you are not subject to the 50% limit on expenses for which your employer reimburses you under an accountable plan.
Individuals subject to âhours of serviceâ limits. You can deduct a higher percentage of your meal expenses while traveling away from your tax home if the meals take place during or incident to any period subject to the Department of Transportation's â hours of service â limits. The percentage is 80%.