I am going to make around 70,000 this year and might have around 6,000-7,000 in business expenses. I really don't have any receipts, but I used the same credit card for all my purchases and it shows on my credit card statements. Is this proof enough in case the governments asks for proof?
2007-09-20 05:58:12 · 5 answers · asked by John L 2 in Business & Finance ➔ Taxes ➔ Other - Taxes
Realistically you should have receipts for all your purchases. But if all you have is 8-10% of expenses compared to income, I don't think the IRS will bother with you. But, in the future, save all your business receipts!!! And just out of curiousity, if you don't keep your receipts how could you return anything that you bought back to where you purchased them from without a receipt?
2007-09-20 08:20:28 · answer #1 · answered by Anonymous · 1⤊ 0⤋
Yes, it will be enough, but it is a wise idea to start saving the actual purchase receipts from now on. Also get a little book for record keeping and add the date, check #, or if cash. If in business it is also wise to use an accountant. The more information that is available them all added up and ready to go at the end of the year will save you money in the long run. They charge you by the hour. The credit card company will send you an itemized statement at the end of the year if you request it - altho it may not come til the end of February and you want to make sure to get the taxes done way before April 15. I usually get them done as soon as the information is available so the accountant themselves are not burnt out and too busy. When people are too busy it is easier to make mistakes.
2007-09-20 13:05:33 · answer #2 · answered by firstgypsywoman 1 · 0⤊ 0⤋
Do the statements show what was purchased, or just the company and amount, which wouldn't be proof the items were for your business? In an audit you'd probably lose at least some of the deductions, but if you are very sure that all these were business expenses, and if you can remember what each was for, I'd go ahead and take them on your return. But START KEEPING YOUR RECEIPTS - what were you thinking?
2007-09-20 13:02:41 · answer #3 · answered by Judy 7 · 0⤊ 0⤋
It can be use, but only if that statement clearly identify it. It many situation, the credit card statement does not really clearly identify the detail of the expenses. You may encounter problems with the IRS agent, if you are audited.
2007-09-20 13:04:39 · answer #4 · answered by Anonymous · 0⤊ 0⤋
I believe you can use that if it is a detailed statement (showing when and where it was used).
2007-09-23 09:54:02 · answer #5 · answered by Carolyn H 1 · 0⤊ 0⤋