 |
The Basics of Record Keeping |
by Tom Copeland
Income
- General Record Keeping Rules
- Keeping good records will save you money
- Review records monthly
- Save records for at least three years
- Three Step Process for Claiming Deductions
- One: Is it deductible?
- It is if it's “ordinary and necessary “ for your business
- Must keep “adequate records “ to support deduction
- Two: How much is deductible?
- 100% Business
- Shared (business and personal): use Time-Space Percentage
- Three: When can I deduct it?
- Less than $100: one year
- More than $100: depreciate
- Section 179 rule exception
- One: Is it deductible?
- Three Key Record Keeping Tips
- Save receipts for all expenses associated with your house
- Keep records of all meals and snacks served (including non-reimbursed meals and snacks)
- Track all the hours you work in your home
This handout was produced by Think Small (www.thinksmall.org).
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