If you deduct travel, entertainment,
business gift, or local transportation expenses, you are
required to keep records that substantiate certain elements of
each type of deduction.
These elements include:
You should keep written records. These can
be in the form of an account book, diary, statement of expense,
or similar record. Generally, you should also keep the bills,
receipts, and cancelled checks that support your
If you are audited and cannot substantiate
your expenses, your deduction will be disallowed.
Recordkeeping needed to prove certain
Below is a table showing how to prove
certain business expenses. See IRS publication 552,
Recordkeeping for Individuals.
Cost of each
separate expense for travel, lodging, and
meals. Incidental expenses may be totaled in
reasonable categories such as taxis, daily
meals for traveler, etc.
left and returned for each trip and number of
days spent on business
or area of your travel (name of city, town, or
Business purpose and business
Purpose: Business purpose for the
expense or the business benefit gained or
expected to be gained.