Organizing Receipts for Tax Deductions: When to Keep and When to Toss

[cookingmommy]

I know you should keep all your receipts but some are a little more difficult.

Do you keep every food receipt and gas receipt?

Also...when I asked my director about tax deductions all she told me was that there are lots of them but she only does mileage. She said there is a standard 30 mile deduction to each show that she uses and doesn't keep track of the odometer. Is that true? What does everyone else use? I would ask my director but she moved and I can't get in touch with her. I need to do some more of those tele-classes. I've had to figure this stuff out on my own so far and to be perfectly honest there's a lot of basic stuff I didn't even realize until I started surfing this site.

 

[dannyzmom]

You should talk to your accountant about all this.
I keep every receipt.
Yuor director is not taking full advantage of all the benefits of working a home basebd business. There is a section on CC about Taxes - check there. Also, somehwre int eh files here are some duciments about all the write-offs we can take.

 

[chefann]

I use actual mileage for my deductions. It's better if you're audited (heaven forbid!). To keep it simple, you can keep a notepad in the glove compartment, and just jot down date, reason for trip, starting odometer, ending odometer. (I have a Palm Pilot and I use a program called Trip that tracks the same information.) Then just enter it into P3, under Expenses.

You can deduct all PC-related mileage: to shows, cluster meetings, conference (if you drive, but you can't do that from Guam ), grocery store to get show ingredients, post office, etc.

There are also a LOT of other deductions. I keep my receipts (I do mean to be better about entering them in P3 sooner). The easiest thing I've found to do with them is get a check sorter. It's a plastic multi-pocket file, like a coupon sorter (which you can also use). I label the sections with the different deductions: postage, office supplies, food, Misc. (PC clothing, etc.), training, and so on. Then I pop the receipts in there for entry in P3 later. Then when tax time rolls around, all I have to do is print the report from P3 and give it to DH.

You can also deduct the $2/month insurance that we pay (on commission statement), as well as conference registration, hotel and transportation. There are a lot of threads around on deductions from earlier this year when people were getting their taxes ready.

(Note: I am not a tax professional. So don't take my word as gospel. Check with an accountant.)

 

[jasonmva]

I keep all of my receipts as well. Every month (or so) I enter them in PP and then print out the income/expense report, attach all of my receipts to it and put it in a 3-ring binder. That way I know what month I have the expense and they are all in one place.

 

[mommyhugz1978]

I keep all my receipts .... In put them into P3... but I keep them in a folder that I would use for a host packet since it has the pockets in it....

 

[ChefJeniLobdell]

Before a show I normally go onto Mapquest or similar type of site and put in for directions from my home to hosts home. That way I can find out exact mileage to write off for my show. I then enter into expenses under the show.

 

[pampchefstacey]

I keep a spreadsheet. I write in each entry with amount paid, description, place, category, date and a made up individual receipt number. I write a number on each receipt (just incremental starting with 1). I use the number so I can show an exact receipt if asked without having to read each in detail. I keep them all in an envelope for 1 year.

Also, if you have more than 1 car make sure you make a notation as to which car you used or keep a separate list for each car.

 

[katie0128]

But of course, the best advice was the first...

Find a tax professional/accountant in your area and get their advice. Rules change often and it is impossible to keep up on all the deductions you are allowed to take and the documentation required if you are audited.

 

[MissChef]

Before a show I normally go onto Mapquest or similar type of site and put in for directions from my home to hosts home. That way I can find out exact mileage to write off for my show. I then enter into expenses under the show.

Oh my Gosh that is such a fabulous idea! Especially for the few times that I have forgotten to record the info! Then you can have the actual mileage not just a guess-timation!
Thanks for the fabulous idea! I love how I can get on here and learn new stuff all the time! I've been doing this business a long time, so I just so much love those "WOW!" moment tips!

 

[legacypc46]

I tried tracking my odometer...but I'm just too disorganized/forgetful! I use the mapquest idea. I refer back to my dayplanner to see where I went that day and then take the mileage off the internet.

 

[chefpenny99]

If you use the Franklin/Covey PC planner it provides a place to log mileage and other expenses for each month.