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Discussion Starter · #1 ·
Okay guys,
What's all the different things that you guys do with receipts? Most receipts are from CC purchases. A few are cash purchases though.

I always like an electronic solution, but am afraid it would just be too labor intensive to scan/sort them.

There are too many for file folders.

Considering more of a "box" system maybe by quarter or something.
 

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I hAD to buy an extra pair of shoes one year.....
wow that a long friggin' time ago.....
 

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I'm kinda old school on receits. I still write checks for EVERYTHING I can. After a purchase I then ask for a receit and stapler, I then staple the receit to the check duplicate. I don't give a rats a$$ whos waiting behind me. I have every receit for every purchace along with the method of payment, when I return something it's easy to find the proof of purchase. Most of the regular places I do business have the stapler right there and know the program. Easier when the guvmnt comes knocking also.
 

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Yep, I'm also the guy in the commercial standing in the line where everyone is swiping their visa and I pull out cash or a checkbook.
 

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Got audited on 2009 for tax year 2007. 3days long in the IRS office. It wasnt that bad--not fun but not bad either. It helped having an accounting background. Receipts are required or the deduction was not allowed. The IRS wanted to see every workorder, bid & invoice that was submitted and our CPA asked the auditer where the freight elevators were so we could bring the 4000 requested invoices/bids/workorders. 20+/- of the largest Rubbermaid Totes for them to look through. :) We brought 1 Tote so they could see how we documented.

WE WON.
 

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Got audited on 2009 for tax year 2007. 3days long in the IRS office. It wasnt that bad--not fun but not bad either. It helped having an accounting background. Receipts are required or the deduction was not allowed. The IRS wanted to see every workorder, bid & invoice that was submitted and our CPA asked the auditer where the freight elevators were so we could bring the 4000 requested invoices/bids/workorders. 20+/- of the largest Rubbermaid Totes for them to look through. :) We brought 1 Tote so they could see how we documented.

WE WON.
My tax guy who used to work for the IRS said that if an expense is reasonably expected for the type of work you're doing and you don't have a receipt that you can still deduct it. Obviously you can't toss every receipt but not to worry about the receipts you can't find etc. I bought a bunch of equipment cash one year from a landscaper who went out of business and wanted to deduct it. This is why it came up. Not in audit THANK GOD for that. Anyway, stay conservative and deduct only enough to keep red flags from going up and you should be okay. Of course you write a bigger check. I know if I get audited for a few of my better years I'm gonna have him redo my taxes and deduct any and everything ever heard of and fight like crazy. The check written to gov was more than I make now.. I would get a little back. Come to think of it I could use that money now..
 

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Discussion Starter · #16 ·
I was unaudited for non-business related items, but since i filed schedule c on my personal taxes I needed to bring in those receipts.

I bought/sold about $10k of stock that year and received an income form for $10k from Sharebuilder. I actually lost a couple of hundred dollars, but forgot to include it in my taxes so it looked like i "skipped" $10k of income. I also was buying my home on contract and claimed the mortgage interest(which is OK) but I had no mortgage interest form sent in my name so it was a red flag.
 

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Good luck! I think when they audit you, they ask for a certain period of receipts that you have to provide. Knock on wood I haven't had it happen but I have really over claimed because I was so scared of audits and I do all of our books old school through excel sheets and file cabinets. My husband took on a partner in 2010 and when it went bad he kept all of our books, deductions and employee info. I 1099 the guy for $150,000 which was like 80% of the income and prepared my husbands taxes as usual so let's hope it doesn't bite me later!
 

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I'm wanting to get the neat receipts scanner so I can just scan right into QB.
 

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Discussion Starter · #19 ·
Shoeboxed can sync into quickbooks.

Not really a benefit for me though as all transactions already go to quick books automatically from my bank. I just have to verify the category is correct and approve it. I actually switched banks just so I could import transactions automatically.
 
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