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We all know we can claim meals and travel...what you don't know! Lisa Patrick

In an audit the most examined claims are travel and meals.  You must ensure you document your intent for business purposes.  Things you need to do to ensure your deduction is safe:

1. Full name or place
2. Reason for the visit ( We suggest attaching paper work copy of meeting if expense over $500)

When documenting, in our experience the first intent of a business purpose must be evident when the purpose is shared between business and personal. 
VERY IMPORTANT: Keep your personal relationship to the person or place out of the details.  It was a business purpose, that is all that should be indicated on the documentation.

In a recent tax court case, the judge was opening perturbed at the fact that the meal receipts indicated: "lunch with my daughter about the website." This description indicated to him the purpose was personal first and business second. 

We suggest that the description of the business luncheon should read: 'Lunch with our website designer - Penny Joe.... Discussion: Graphics Improvements Needed'

Darlene Lafond R.P.A., C.P.C.
 




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