O'Reilly logo

J.K. Lasser's Your Income Tax 2013: For Preparing Your 2012 Tax Return by J.K. Lasser Institute

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

20.28 Proving Travel and Entertainment Expenses

To satisfy the IRS requirements and to substantiate your expense deductions in the event of an audit, you need two types of records:

- - - - - - - - - -
image Planning Reminder
Credit Cards
Credit card charge statements for traveling and entertainment expenses meet the IRS tests, provided the business purpose of the expense is also shown. Credit card statements provide space for inserting the names of people entertained, their business relationship, the business purpose of the expense, and the portion of the expense to be allocated to business and personal purposes. These statements generally meet the IRS requirements of accounting to your employer for reimbursed expenses (20.32), provided a responsible company official reviews them. However, you need a receipt for lodging; the IRS will not accept a credit card statement as substantiation of a lodging expense.
- - - - - - - - - -
1. A computer log, diary, account book, or similar record to list the time, place, and business purpose of your travel and entertainment expenses; and
2. Receipts, itemized paid bills, or similar statements for lodging regardless of the amount, and for other expenses of $75 or more. But note these exceptions:
  • A receipt for transportation expenses of $75 or more is required only when it is readily obtainable. For example, for air travel a receipt or a boarding ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required