Someone once told me that there was some kind of rule about writing of expenses of like $75 or less without receipts. Any one ever heard of that? Just wondering!

Business expences under 75.00 each. As a general rule you can, but I dont advise throwing any rec. away. Always keep receipts if your given one. In a case where like if you lets say stop at a Car wash to wash your truck after bobtailing to Wal Mart, and it cost you say 35.00 in quarters and you have no way to get a rec. You need to log it in a cash journal as to when, where, how much and what for. Or even keep a rec. book for filling these types of expence spending where a rec. cant be obtained out. Just remember its also got to be within reason. You wash lets say your truck 2 times a week at 45.00 a wash in 8 different little towns across the country in a month and think its going to fly with an IRS Agent ,your wrong. I know you may like your truck, but they arent going to go for it.. I highly dought youll get the full benifit of it if you over do it. These type of no rec. documentations do work, and work well.

I think what you are referring to is the Lumper fee - and yes it has to be logged for each time that you wish to claim it. Haven't had too many claim that this year since most of the drivers I do are unloaded by the company they deliver to. The lumper fee is supposed to be what you pay out of pocket for assistance in unloading your truck - anything over $75 you need to keep a receipt for and above all else log it no matter what it costs.

Linda

This rule in general purports to cover mainly travel and entertainment expences. Many auditors will allow other business deductions without a rec. as well. If the auditor doesnt want to allow it without documentation, then state The Cohan Rule to them. (Cohan vs Commissioner of Internal Revenue, 349 F. 2d 540. 2nd Cir.1930) Its like Kriptonite to Superman to them, and youll be able to reason with them alot better. Make sure its reasonable and necessary. Dont overdue it. But #1 Get a rec. if all possible. And if you cant, make sure you document it appropriately for audit purposes.