Dec 1, 2007

Save That Business Expense Receipt!!

Many taxpayers routinely throw away business expense receipts without thinking of the potential tax deduction associated with them. Here are just a sample of the types of business-related expenses at 50% of cost:

1) Food/drink furnished on company premises primarily for employees,
2) Recreational or social activities, including facilities primarily for employees,
3) Entertainment and meal expenses for employees if they report the value as taxable compensation,
4) Entertainment and meal expenses at business meetings,
5) Costs of entertainment and meals sold to customers,
6) Expenses directly related to and necessary for attendance at business meetings, and
7) Expenses incurred for goods, services, and facilities provided to non-employees (i.e. customers, vendors)

These are but a few of the business expenses allowed by the IRS. One thing to remember–write the time, place and business purpose on every receipt you keep. Proper documentation is the key to ensuring that you get credit for allowable expenses on your tax return.

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