The last couple weeks I’ve been telling you how to keep receipts in order to document deductible business expenses. Here’s an email I received recently on this topic:
I have really been enjoying your various articles and blogs. Thanks for taking the time to share your wisdom on small business tax deductions.
I run a small business that requires a lot of travel throughout Central America. The business expenses are always low as the region is still developing ($5 meals, $15 hotel stays) but I find it very difficult to get receipts and the bookkeeping burden is huge.
Are there ways (i.e. a Per Diem method), to avoid the hassel of keeping such extensive records? Are the paper receipts necessary (most are just scribbles on generic receipt paper)? I would LOVE if you had any interest in writing an article about this subject. Please let me know.
Barefoot Atlas Inc
The answers to Devin’s questions can be found here:
The General Rule: No Receipts, No Deductions. http://selfemployedtaxdeductionstoday.com/does-the-irs-require-receipts/
One Nice Exception to The General Rule: the Per Diem Method for Meals.
But did you notice that Devin says he travels outside the USA. Hmmm . . . How does that work?
Good News — the Per Diem Method for meal expenses can also be used for travel outside the USA. You can find the rates here: