What is necessary to validate entertainment expenses for a business deduction?
Before anyone can take the deduction for entertainment, according to the IRS, the taxpayer must have valid paperwork in his/her possession validating the following:
1) Who you were with
2) What you talked about and how it was related to business
3) Where you were
4) What amount was paid
This is best accomplished by charging the expense on your credit card/debit card and keeping the receipt with the back to the receipt filled in for the above information. If you keep this in paper or via scanned to a computer, it will satisfy the IRS rules and be available to you in case of an IRS audit.
