Is a credit card/bank statement enough for businses tax write offs?
I’m filing taxes for my consulting & real estate business, for about 41,000 and have about 10,000 in tax write offs, but only receipts for about 30% of it. Are bank and credit card statements enough if ever audited?
What if the charges were made through companies that are for like quaterly real estate dues, or real estate boards specifically?
No. You must have receipts. Bank and credit card statements generally only show who was paid and how much was paid but NOT what was paid for. You only get THAT from receipts.
If you have lost your receipts through some catastrophic event beyond your control the IRS will generally work with you using whatever documentation that you do have available but you will have to provide proof of the catastrophic event before they’ll go down that road.
I’m afraid the answer is probably not. I’ve seen auditors allow non-substantiated expenses when the client had almost all of his other receipts, but 30% is a very low number.
Checks and credit card statements will show how much you paid to someone, but it doesn’t establish business purpose in many cases. Your deductions might be subject to disallowance on audit.