From the “I couldn’t have said it better myself” file:
Check out today’s posting at the Small Business Taxes and Management website’s NEWS AND TIP OF THE DAY on “Documenting Travel Expenses” –
“What do you have to document to insure the IRS allows a deduction for travel expenses?
Check out today’s posting at the Small Business Taxes and Management website’s NEWS AND TIP OF THE DAY on “Documenting Travel Expenses” –
“What do you have to document to insure the IRS allows a deduction for travel expenses?
· Amount--The cost of each separate expense for travel, lodging, and meals. Incidental expenses may be totaled in reasonable categories such as taxis, daily meals for traveler, etc.
· Time--Dates you left and return for each trip and number of days spent on business.
· Place or Description--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.
The above documentation should be kept in a diary, account book, log, etc. You can use either a hard copy or an electronic substitute such as a PDA {I use a pocket date book – RDF}. In addition, you must have documentary evidence such as receipts, credit card statements, etc. for any expense for lodging while traveling away from home and for any other expense that is $75 or more. If you're combining business and personal activities on the trip, you be particularly careful in documenting the business portion. For more information, get IRS Publication 463."
Great tip but can anyone give me a definition of "business purpose"? I can't find a definite answer anywhere. What details of a trip are required to fulfill this requirement?
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