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SELECTED PRESS RELEASE:
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posted on:
6/28/2012 10:12:33 PM EST
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Records To Support Your Travel & Entertainment Deductions
IRS, travel expense, tax deduction, meals deduction
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Substantiation Rules for Travel & Entertainment and Listed Property
Substantiation is required for the following deductions: travel expenses while away from home (including meals and lodging), entertainment and arrangement of recreational activities or facilities and business gifts. For these items, you must substantiate:
1. The amount of the expense or other item.
2. The time and place of the travel, entertainment, amusement, recreation or use of the facility or the date and description of the business gift.
3. The business purpose of the expense or other item.
4. The business relationship to the taxpayer of the persons being entertained, using the facility or receiving the gift.
For meals and entertainment, IRS only requires actual receipts when the expense exceeds $75. However, for lodging expenses, IRS always requires receipts regardless of the amount.
In addition, you must meet substantiation requirements to claim deductions or credits for the business use of "listed" property. Listed property consists of items that readily can be adapted to personal use. Some examples include: any passenger automobile; any other property used for transportation, such as airplanes, trucks and boats; property of any type generally used for entertainment, recreation or amusement (disc players, video recorders, etc.); any computer or peripheral equipment unless it's used exclusively at a regular business establishment.
Under current law, you can back up your deductions with either adequate records or evidence to corroborate your own statements
Furthermore, expenses for travel and entertainment must be ordinary and necessary in the course of business. Also, no deduction is allowed for approximations or estimates or expenses that are lavish or extravagant.
For more information related to this and other tax related topics, visit The Network Marketer's CPA on Facebook or Blogger.
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