Business and Marketing

There are exceptions to the rule, "Do not get any deduction." This article explains the three.
No receipt, no deduction, no? In general, yes. The mantra of the accounts of small businesses has been strong for decades implacably, "Do not get any deduction."
My clients own taxes are quick to remember this rule of basic record keeping. Over the years I heard many times: "But I have not received, I can not take the deduction on the right.?"
What is my response to "No receipt, no deduction" complaint? "Not so fast Wherever there is a tax rule is an exception."
In some situations, is to take deductions without a receipt is sanctioned by the IRS. Here are three statutory exceptions to the "No receipt, no deduction" rule.
EXCEPTION # 1: vehicle expenses is allowed to deduct vehicle expenses to the extent that you used your vehicle for business. If you drove your car 100% for business customers, while 100% of your vehicle expenses are deductible.
And there are two options to determine the cost of the vehicle: 1) the actual cost method 2) Method Mileage
Our focus is on option # 2 - because the cost of the vehicle mileage method is simply the number of business miles times the official IRS mileage rate.
For 2009, the rate is 55 cents per mile. In 2009, if you drove your car 10,000 miles on the business you can report a deduction of $ 5,500 - without having to keep all receipts of gasoline, oil changes, repairs and maintenance, insurance etc.
You need to document your mileage for business via a newspaper written in a way, but it is generally much easier than saving all receipts for the costs of actual vehicle.
Exception 2: meals during the trip when traveling out of town on business overnight, you can deduct the actual cost of meals (keeping the receipt), or you can count on little-known "per diem method" ( not require receipt).
The per diem method gives you a daily meal allowance for each day of travel, depending on what part of the country you are visiting. Believe it or not, the IRS does not require a receipt when your business meals or entertainment expenses of less than $ 75 per invoice.
Too good to be true? Well, there's an "updating" of course, always keep a record of the following five facts about the case of deductible:
1) Who do you want to eat or entertain? say the name of people and the nature of their business relationship for you
2) Where there occurs entertainment? Date of knowledge
3) What is entertainment? that is the name of the restaurant or other place
4) Why? namely the description of the business purpose of a meal or event
5) How did you use? dollars
You should record these five elements of the register. Calendar of events a day or Day-Timer is the perfect place to jot this down to less than a minute. After you meet the IRS requirements for display, you can throw away the receipt. If you select, you can hide.
Two final comments: Exception 2 applies to situations of travel during the night, if you eat their meals alone or with business partners. Exception 3 applies to meals and entertainment expenses incurred when you're with someone who has a business relationship or potential, whether in town or traveling at night.