April 8, 2014
If you intend to deduct business travel expenses on your income tax return, keep adequate records. If you are later audited, you will be able to substantiate your deductions. Your oral summary of your business expenses will not hold up to an IRS audit. Besides, audits are often a year or so after the events which make it more difficult to recall what took place if you don't have proper documentation.
The easiest way to keep good records is to do so near the time the expense was incurred. Consider using a large envelope for each trip to keep all receipts and other trip information. Take a few seconds to write the business purpose and/or customer names on the back of appropriate receipts. If you are lacking a specific receipt, write your account of the event, the date, and the money paid out and save it along with your other travel documentation. Take time also to document the business miles travelled.
If you maintain an expense report on a weekly basis for the expenses of that week, it will be considered a timely kept record for IRS purposes. If you account to your employer under an accountable plan, the rules are different.
For assistance in setting up a record system for your business travel, please contact us.
This tax season is an important one for many business owners because it’s the first that will be impacted by the Tax Cuts and Jobs Act (TCJA). How big of an impact is dependent on your unique situation. We’ve compiled this short list of provisions that may affect the business community:
According to Forbes.com, Super Bowl viewers traditionally load up on millions of pounds of less-than-healthy foods during the big game—including ribs, pulled pork, tortilla chips, nuts, popcorn and bacon—all washed down with beer (the Super Bowl beverage of choice). If you are trying to stick to your New Year’s resolution to eat better, consider a few healthy substitutes for the traditional Super Bowl eats:
The combination of running a business and your life and preparing for tax time can drive some people into a slight panic. But no need to get stressed if you are prepared. Now is the time to start organizing all documents required to file your tax return.