Knudsen v. TRANPSORT LEASING/CONTRACT, INC.

OPINION

GORDON W. SHUMAKER, Judge.

Appellant leased truck drivers from respondent and deducted as business expenses on his personal income tax returns 100% of the per diem payments made to the drivers. Because the Internal Revenue Code allows only a 50% deduction for per diem payments, appellant incurred additional income tax liabilities. Appellant then claimed that respondent had agreed to indemnify him against tax losses relating to respondent’s employees. Ruling that the parties’ unambiguous agreement provided for indemnification that did not include the tax liabilities assessed against…