La Quinta, CA
(760) 895-3516

Thursday, April 30, 2015

Maintaining Proof of Payment for Deductable Expenses

When selling or buying an item that will be used as an expense or income on your tax return, it is important to keep proper statements for the transaction. Here is what the IRS is looking for in terms of proof of payment according to the different methods of payment.
Cash
  • Amount
  • Payee's name
  • Date of transaction
Check
  • Check #
  • Amount
  • Payee's name
  • Date the check was posted by bank
Debit or credit card
  • Amount charged
  • Payee's name
  • Transaction date
Electronic funds transfer
  • Amount transferred
  • Payee's name
  • Date transfer was posted by bank
Payroll deduction
  • Amount
  • Payee code
  • Transaction date

If you have any tax preparation needs, give Borders Bookkeeping a call in La Quinta, CA. We also provide small businesses with bookkeeping services. Call today for a free consultation.
Borders Bookkeeping
(760) 895-3516