I am quite dilligent about keeping all business expense receipts even for small amounts of money. My question is should I still report an expense if I have lost the receipt but do have credit card statements to proove it?
I would think an auditor would appreciate my diligence with record keeping and be convinced my expenses for which I do not have actual receipts are legitimate?
Also is there any minimum amount for which no receipt is required, like $25 and under expenses?
What is the ratio of expenses without receipts to total expenses?
Often you can get receipts by contacting the company.
There's no limit. But if a receipt is not readily available, then it's OK. Examples I can think of are bus fare and toilet fees (they have this in France).
Do you have contemporaneous notes or logs to show the business purpose of the expense?
Let's try two answers, just hypothetically. 5%, and 50%.
"even for small amounts of money" ?
They also have bus fare in the U.S. Are toilet fees deductible in France? I don't think they are in U.S., unless you are in the business of providing toilets or toilet-related services.
-Mark Bole
In either case you need receipts. Except in the case of 5%, maybe there's a chance you can get away with it? Is this true?
Yeah, it's possible if they have good records in a computer, like at companies with a web storefront. Stores like Circuit City which have a web and physical store presence, may even be able to help you if you bought everything at the physical store, but I'd need to test that out.
If you were on a business trip in the US or France, and had toilet fees, they would be deductible. I don't know anywhere in the US that has these fees though.
Right; most definitely a personal expense. Like haircuts. (but my hair GROWS on company time!)
ChEAr$, Harlan Lunsford, EA n LA
On a business trip, stuff I could do for free at home (if I were home) but that costs money because I'm travelling is deductible. (E.g. laundry.)
Suppose normally your wife cuts your hair (free), but on a months-long business trip you go to a barber. Would that be deductible?
Seth
That is not a general rule. Laundry is specifically defined as a travel expense (see Pub 463, table 1-1), so that is not a relevant example.
Laundry is specifically excluded as an incidental expense, same page.
No. Even people required as a condition of employment to get frequent haircuts (e.g. military members) do not have a deductible employee or business-related expense for that.
Besides, when you start talking about "months long" business trip, you raise questions about tax home.
Pub 463 mentions an optional method for deducting incidental expenses at a flat daily rate.
Beyond that, it's facts and circumstances. See Pub 463. Here's one, how about hotel in-call massages you pay for to relieve the stress of traveling on business?
-Mark Bole
She does but even if I had to pay for it out of town, that would still be a personal expense, similar to the personal massages she gives me. Could I thus deduct those personal "massages"? away from home?
ChEAr$, Harlan
I keep 95% of my receipts above $35 and maybe 80% below $35 . Is this good enough to convince an auditor I am 'honest'?
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