Monday, March 14, 2011

Record of Travel and Entertainment Expenses

Tax Tip:  One of the most frustrating aspects of preparing income tax information is gathering detailed records to maximize your deductions. This is especially true for out-of-pocket expenses pertaining to entertainment and travel.

If you haven't already done so, start today by using this or a similar chart to record contemporaneous expenses. If you have a taxable entity other than a sole proprietorship, each week, you should submit the record of expenses to your employer for reimbursement. If you are self employed, write a check either on your corporate, partnership, or LLC account to reimburse yourself. This alleviates the necessity of reporting these expenses on your personal individual return where they may be more closely scrutinized. The expenses will be a deduction at the entity level and will not need to be reported as income on your individual return.

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