Business Tax Deductions Without Receipts
Tax deductions are a key role when you’re running a business, and most good business owners know that if you want to get particular expenses deducted, you’re going to have to have receipts. Without receipts, you may think that you don’t have a chance at getting the deductions, but this isn’t true, and I’ll tell you why.
Many business owners assume that you can’t deduct an expense if you don’t have a receipt. If you don’t have one, don’t just skip over that expense, but rather follow these simple rules on how you can get it deducted. Keep in mind that I’m not a accounting specialist, but any owner can find this information rather easily.
Driving around your car - In 2009, you’re able to deduct 55 cents per mile, and rather than saving all of your gas receipts, repair receipts, and everything else, you’ll find that it’s a lot easier to just maintain a log, rather than keeping this piece of paper. Now, I highly recommend that you keep as many receipts as possible, but to play it safe, keep a simple journal. Write down the mileage for everywhere you go, as well as whenever you fill up with gas, get a repair, etc. This all must be business related.
Knowing the IRS rules
Did you know that you can eat, or entertain clients for less than $75 without a receipt? Well, there’s a catch of course, but like anything, you’re going to need to document it, rather than just rely on your brain. If you don’t have the receipt, I highly recommend you write down the following.
- How many people did you entertain? Who was it?
- What was the event for?
- When did it occur (the date)? Where was it?
- How much did you spend?
Just take these items, and write them down on a piece of paper, or file it in a log of some sort.
These are just a few tips that you can follow if you don’t have a receipt. If you have a tax professional, I highly recommend that you call up him/her to get more information on what you can do. The point here is to not ignore those that don’t have a receipt, but rather find ways around it.
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