There is No Reimbursement in that paragraph. It just means all of that I told you is part of my Gross Revenue. It doesn't change that my own business expense tracking will be Miles, actually incurred business expenses per the IRS, etc. That just means you have to pay me All of this for everything I turn in. I will charge you $100 per day for 'costs' + my Daily rate of $1,000 + 'gas'. It's just another way of expecting Revenue. This does not Preclude that contractor from entering for their own business tax expense the lodging and food and other travel as qualifies for their own tax return. Which seems like the Contractor is asking the Client to pay a Per Diem. The same is true for the comment here: ' and gives the contractor a certain dollar amount per day' And a Contractor can certainly list 'office space provision' on their charge to the customer, as just another justification item for why the customer should pay them more. I am not responding in regards to office space, which is a different concept. You don't know if I used that gas to go chop wood this weekend, and then filled up on the way to the job site just now, and I intend to go back into the woods tonight to get that wood, and then tomorrow, on the way to the shop, I intend to fill the tank again, and bring you another receipt. You can, of course, throw Money at me, but that is not An accountable Plan. Just because I bring a Gas fillup receipt, you have no idea where I used that gas.

'Are you saying an employer can not reimburse an employee's vehicle expenses using the Actual Expenses for the vehicle?'

Are contractor expenses taxable