Tracking Expenses

[paulrsf]

Just filed my tax returns for 09. My accountant told me something I was unaware of. The IRS requires the following information itemized for each repair job when submitting expenses related to business. Apparently this is nothing new, but they are going to begin enforcing it more strictly as of 2010.

1. Customer Name / address
2. Date of repair, start time/end time,
3. Beginning Odometer / Ending Odometer
4. Total Distance Driven

I use an iPhone and my accountant suggested an application that helps keep track of each repair job. I began using it today. So far so good. I'm sure there are dozens of other expense tracking programs out there.

[t4k]

When you say "expenses related to business", what exactly are you talking about?

[Ricersux]

I'm an S-Corp and I'm not sure what you are talking about but I do know that if your sales are under a certain X amount you do NOT have to provide an itemized balance sheet. I can't remember the actual sales number sorry.

This pertains to those who file the 1120-S tax form.

[paulrsf]

What I meant by expenses related to business are travel expenses:
Fuel, mileage, tolls, maintenance and repairs. I just looked on the irs.gov site to find what the threshold amount is for keeping a detailed balance sheet, but I couldn't find any pertinent information. My accountant told me that new IRS guidelines require more in depth accounting for travel related expenses. He said that expenses included without proper documentation of odometer reading, miles driven, etc., run the risk of being tossed out. I hope not, because I have only just started keeping more in depth records....

[bill lambeth]

My degree is in accounting.You cannot write off mileage and gas,repairs,car payment and so on.It is either mileage or the rest.You cannot have it all.I am not aware of a balance sheet that is broke down that much.Just make sure that your expenses are legit.Worst thing that will happen if you over state your expenses is that you will have to pay them back with interest.Now if you get caught not reporting all your income you can do some time and some big fines.My theory is you do everything by the rules and you will be in good shape.