Tax Write Off #463

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:

  1. Who – Name of person you entertained.

  2. What – Meal, product sample, business gift.

  3. When – Date of meal and/or entertainment.

  4. Where – Location or place (business or home).

  5. Why – What is the business reason (tried to get referrals, presentation, etc.).

  6. 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.

Bon Appetit!

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