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Old 01-10-2013, 01:42 PM   #40 (permalink)
BigEd
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Join Date: Dec 2011
Location: Portland, OR
Posts: 2,580
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Quote:
Originally Posted by HoustonCPA View Post
...You can document your trips by keeping a travel log. The log should contain the date of the trip, the beginning and ending mileage from your odometer, and the business purpose of the trip. If you commingled your business trip along with a stop at the grocery store or to pick up your kids, the full trip doesn't technically count as a business trip.
And keep that travel log as you go. Seriously, they don't mess around with the Standard Mileage Deduction. If you get audited, they'll want to see it and they'll expect it to look like you were keeping the log all year, not like you put it together in February before you filed your taxes.

Quote:
Originally Posted by Joed25 View Post
I buy a lot of private collections and of course I pay with cash. The seller would never trust me with a check bec they don't know me. If I would be audited what would I need to prove that I spent the money? It is hard to get reciepts from people that I am paying cash to. Could I keep my own records like write my own receipt or keep it in a note book? Would the IRS accept that? I do have the bank statements that show cash withdrawals, does that help? Thanks
My 2 cents: Definitely hold on to the statements, but also make a list of how much you spent and what was in the lot. If you can get the person to fill out a receipt, that would be best, but I'm guessing most people who sell large collections don't want anyone from the IRS to track down the sale. I'd like to hear from the OP on this one as well.
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