Tax Tip

When you record the business explanation for expenses on your receipts, pick a category for that expense and try to be consistent. It is a lot easier to do the book keeping when all expense categories are consistent. It is not so important what you call the category… eg you could call the category “Fudge Expenses,” because it is not the category that makes it deductible, any reasonable expense can be written off. Your tax preparer can either rename the category or create a category in your business activities portion of your tax return.

Dan White