Did You Know…
It is not enough to simply save a receipt and use it as a business expense for a tax write off?
To satisfy the requirements established by the IRS, you must notate the following on the back of the receipt:
- Who – Name of person you entertained.
What – Meal, product sample, business gift.
When – Date of meal and/or entertainment.
Where – Location or place (business or home).
Why – What is the business reason (tried to get referrals, presentation, etc.).
How much – price, cost
(Of course some of these things are already on the receipt).
Try to get into the habit of jotting down the 5 W’s & H for each business luncheon/meeting you host, and you’ll be sitting pretty at tax time.