Do not waste time on entertainment or auto expenses you cannot deduct.

Filed in Accounting, Business, Tax, Savings by on December 12, 2013

Please do not waste time on entertainment or auto expenses that you cannot deduct. 

You cannot deduct receipts from McDonalds, Burger King or other restaurants unless they relate to out-of-town overnight travel OR the entertainment of others. You also must have the name of any person entertained on the receipt or in a contemporaneous diary.

You need not keep all auto expense receipts. However, for business car mileage, you need a diary unless you want to risk trying to prove miles in very difficult and questionable ways. There is no need to do this, as smartphone apps can now help you do this for almost nothing. 

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