"Randy" <randys96[at]hotmail.com> wrote:

- quote -

Save the receipts! A payment to a given person or company
does not prove that it was a qualified deduction. For
example, a payment to Dr. John Doe isn't obviously a medical
expense, particularly if the check is made to "John Doe."
Like wise a check made payable to "Long's Drug Store" could
be for many personal items that are not necessarily
deductible. You risk losing too many deductions if you have
nothing but the bank statements for support.

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Randy wrote:

- quote -

Yes, like diapers, it "depends."
Depends upon audit what side of the bed the auditor got
up on.

My preference is for my clients (and me) to save receipts.

Cheer$,
Harlan Lunsford, EA n LA

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Sorry if this is a stupid question. I pay most of my
business expenses through my business debit card. Each
purchase posts an entry in my bank statement with the date
of purchase, post date, company name etc..etc... I was
wondering if this is good enough in terms of documentation.
Do I still need the receipt? Often I either misplace a
receipt or two or the original is so faded that you can't
see anything on it.

If I ever get audited I was hoping that the bank statement
entries would be good enough. Any thoughts?

Thanks
Randy

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