Recordkeeping

If you deduct travel, entertainment, business gift, or local transportation expenses, you are required to keep records that substantiate certain elements of each type of deduction.

These elements include:

• the amount spent,
• the dates the expenses were incurred and
• the business purpose of the expenditure

You should keep written records. These can be in the form of an account book, diary, statement of expense, or similar record. Generally, you should also keep the bills, receipts, and cancelled checks that support your expenditures.

If you are audited and cannot substantiate your expenses, your deduction will be disallowed.

Recordkeeping needed to prove certain business expenses

Below is a table showing how to prove certain business expenses. See IRS publication 552, Recordkeeping for Individuals.

Travel

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