Business Expense Documentation
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How to Prove Certain Business Expenses
| If you have expenses for . . . |
THEN you must keep records that show details of the following elements . . . |
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Amount |
Time |
Place or
Description |
Business Purpose
Business Relationship |
| Travel |
Cost of each separate expense for travel, lodging, and meals. Incidental expenses may be totaled in reasonable categories such as taxis, fees and tips, etc. |
Dates you left and returned for each trip and number of days spent on business. |
Destination or area of your travel (name of city, town, or other designation). |
Purpose: Business purpose for the expense or the business benefit gained or expected to be gained.
Relationship: N/A |
| Entertainment |
Cost of each separate expense. Incidental expenses such as taxis, telephones, etc., may be totaled on a daily basis. |
Date of entertainment. (Also see Business Purpose.) |
Name and address or location of place of entertainment. Type of entertainment if not otherwise apparent. (Also see Business Purpose.) |
Purpose: Business purpose for the expense or the business benefit gained or expected to be gained.
For entertainment, the nature of the business discussion or activity. If the entertainment was directly before or after a business discussion: the date, place, nature, and duration of the business discussion, and the identities of the persons who took part in both the business discussion and the entertainment activity.
Relationship: Occupations or other information (such as names, titles, or other designations) about the recipients that shows their business relationship to you.
For entertainment, you must also prove that you or your employee was present if the entertainment was a business meal. |
| Gifts |
Cost of the gift. |
Date of the gift. |
Description of the gift. |
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| Transportation |
Cost of each separate expense. For car expenses, the cost of the car and any improvements, the date you started using it for business, the mileage for each business use, and the total miles for the year. |
Date of the expense. For car expenses, the date of the use of the car. |
Your business destination. |
Purpose: Business purpose for the expense.
Relationship: N/A | |
| 10/27/2009 |
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