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Tax Rules On Auto, Entertainment And Travel
VI. Substantiation
Amount, Time, Place, Purpose, and Relationship.
mount, Time, Place, and Purpose of the travel.
Amount, Time, Place, Purpose, and Relationship.
Amount, Time, Description, Purpose, and Relationship.
Amount of Expense, Amount of Use, Time, and Purpose
Expenses for recreational, social, or similar activities primarily for the benefit of employees.
Receipts, canceled checks, paid bills, or similar evidence.
It must be accompanied by other evidence showing the business purpose.
Documentary evidence is required.
Documentary evidence is required regardless of the amount.
It can be accepted as proof of payment if it meets certain conditions.
It has a high degree of credibility when supported by sufficient documentary evidence.
By maintaining adequate records for representative periods of the taxable year.
They must bar personal use or prohibit personal use except for commuting.
Deductions for business gifts.
A written statement is generally required unless the purpose is clear from the circumstances.
They must be supported by sufficient corroborating evidence.
Expenses can be reconstructed if records are destroyed due to reasons beyond control.
They must be primarily for the benefit of employees.
They are exempt from the percentage reduction rule.