Dear ,
Tax write-offs can help reduce your business tax bill significantly. But you must first earn them and ensure that they will pass any audit from the IRS.
The process of ensuring that all tax write-offs can pass an audit by backing them up with paperwork is called audit proofing. I taught about this last year in my audit-proof Masterclass (contact my office at (202)618-1297 if you want a replay of the Masterclass).
Below is an example of how to audit-proof a business activity such as a marketing photo shoot.
- Create a log (register) for the photoshoot
- Make it ordinary and necessary – e.g., a marketing shoot
- Record everything you buy for the photoshoot in the log, where, and when
- Capture every step and time into the log, for example, shoot at the HH Gardens, April 1, 1400HRS
- Keep receipts, including the ones for refreshments and lunch
- Record meals and refreshments into the log
Once you complete the above, give it to your bookkeeper to update records.
Do this for everything you do in your business and keep receipts. It will be easy to write off on your business tax return.
Do you have questions about the above? Call my office at (202)618-1297. We will answer all your questions.
