Are you tired of sifting through piles of receipts to document your business expenses? There’s good news! You can avoid the hassle of keeping receipts for some expenses with the $75 Rule for Business Expenses.
💸 Under the $75 Rule, you don’t need to keep receipts for certain business expenses, such as travel, vehicle, and gifts that cost less than $75. It means less clutter and less time spent organizing receipts, so you can focus on growing your business🎉
But beware! Not all tax deductions qualify for the $75 rule. We want to make sure you stay informed, so here’s what you need to know:
🚫 Don’t assume you don’t need receipts for all your tax deductions, which could result in a significant loss of deductions and penalties.
💡 Even if you don’t need a receipt, it’s still important to document your expenses properly. Your bank and credit card statements don’t provide sufficient proof of expenses for tax purposes.
📌 Keep in mind that the $25 limit on deductions for business gifts applies, meaning the practical limit is $25.
Keeping track of your business expenses is crucial. That’s why in Palma Financial Services, we encourage you to keep all your receipts for tax purposes, as they often take less time to keep track of and are better evidence in the event of an IRS audit.
To simplify your accounting, book a tax assessment with us here!